A Comparative Study Of The Consumption Behaviors Of Herdsmen And Farmers

Based on the modern theories of consumption economy, farmer household economics and comparative economics, this research makes use of the ELES model to have a comparative study, in a systematic way, of the consumption behaviors of farmer families and herdsman families in Inner Mongolia. Grounded on reviewing the theories and practices concerned at home and abroad, the research conducts an innovative study in the following 4 parts:The first part comparatively analyses in a comprehensive and systematic way of the income level, income structure and income sources of farmer families and herdsman families in Inner Mongolia. The income level is the most important element that influences the consumption behavior. Therefore, in this part a comparison is conducted of the absolute income levels of farmer families and herdsman families. In Inner Mongolia, there is a great difference between the actual net incomes per capita of herdsman families and farmer families. In most of the past years, the actual net income per capita of herdsman families is 0.5 to 1 times more than that of farmer families in Inner Mongolia Autonomous Region. The proportion of the nominal net income per capita of herdsman families to that of farmer families was 1.46:1 in 1980; in 2000 the proportion was 1.79:1 and in 2005 1.54:1. From the perspective of development, the income of herdsman families increased by 11.83% every year from 1980 to 2005; while that of farmer families in the same period increased by 11.59% every year. The difference was only 0.24%. So their increase rates did not greatly differ from each other. And both the income of herdsman families and that of farmer families highly depend on their family management. More than 90% of the income of herdsman families was from their main industry: animal husbandry and over 75% of the income of farmer families from their main industry: planting industry. This indicates that the herdsmen are more dependent on their main industry and their income sources are not diversified.The second part systematically and comparatively studies the general consumption level of herdsman families and farmer families and their consumption structure. On the basis of the analysis of income levels of herdsman families and farmer families in Inner Mongolia and the evolvement of their consumption patterns, according to the cross section data in 2005, this part, with ELES model, compares and analyses the basic consumption demands and consumption structure of herdsman families and farmer families, their marginal consumption propensity, price elasticity of demand and income elasticity of demand. This part also discusses the influence of price and income on the consumption of herdsman families and farmer families , and their inclination for consumption.1. The actual average consumption expense of herdsman families is remarkably higher than that of farmer families in terms of the absolute consumption level. From 1980 to 2005 the actual per capita consumption for life expenses of herdsman families is 1.3 to 2.3 times as much as that of farmer families, on average over 80% more than that of farmer families. From the perspective of development the consumption of herdsman families in Inner Mongolia increases 12.7% every year. In the same period that of farmer families is 11.2%. The difference is 1.51%. According to the recent years' observation, the gap between the herdsman families' income level and that of farmer families' is widening, which is hard to be changed in the near future.2. The expenses on food, housing, traffic, communications, education and entertainment consist of a great part of the expenses of herdsman families and farmer families which meet their basic demand. Food expenses are the most important and basic expenses of herdsman families and farmer families. However, the expenses of herdsman families on entertainment and improvement are a bit higher than those of farmer families, which shows that the demand of herdsman families is at a higher level than that of farmer families. As far as the expenses of herdsman families and farmer families on the classifying items of their various consumptions are concerned, their expenses on education, entertainment and service are obligatory. And they spend little on service and much less on entertainment. To be more exact, it is the kind of forced expenses confined by low income; their expenses on medical care are mainly focused on medicines and medical treatment. A little is expended on service and there are almost no money pored into health care. The expenses on service and health care are also the forced expenditure confined by their low income. Besides, the herdsman families and farmer families expend a little on household appliances. Based on what is analyzed above, it is clear that the expenditure of the residents in rural and pastoral areas especially those in rural areas is still low , and the consumption structure is still at a low level.The third part is a comparative study of the consumption level and consumption structure of different consumptions of herdsman families and farmer families and these different consumptions' future. This study is done according to the analysis of the evolvement, characteristics and tendency of such different consumptions of herdsman families and farmer families in Inner Mongolia as food, housing, durable consuming goods and service. The study shows that the consumption level of herdsman families on food, housing, durable consuming goods and service is higher than that of farmer families, which also proves that the consumption of herdsman families is at a higher level than that of farmer families.In the fourth part some suggestions to increase the consumption and actualize the harmonious consumption in rural and pastoral areas are put forward as follows: continuously increase the income of herdsman families and farmer families and build up the confidence of herdsman families and farmer families in consumption; take gradual steps to establish a better social security system to provide herdsman families and farmer families with modern social security system; further develop and improve the consumption loans in rural and pastoral areas; better the consumption situation in rural and pastoral areas; steer and correct the unreasonable consumption of herdsman families and farmer families by media and governmentAlthough some new attempts are made in this research while the comparative study is systematically conducted, there still exist some problems which are worth being further studied, that is, the design of a comprehensive measurement model; further study of the history, culture and religion in Inner Mongolia; the comparative study of the consumption behaviors of herdsman families and farmer families in different regions, at different levels and with different degree of literacy.