Research About Impact Of Social Security To China’s Rural Consumer Behavior

At present, the party and the government is promoting the building of new socialist countryside actively and promoting the conversion of rural consumption structure. The rural social security system is the basic measures of expanding on consumer demand in rural areas, and promoting development the formation of growth in domestic economic. Therefore, in-depth research the influencing factors of rural residents income and consumption, the impact of the social security system to measure of economic growth in China, will have an extremely important theoretical and practical significance.To analyze the impact mechanism of social security on China’s rural household consumption behavior, the normative analysis and empirical analysis were used in this paper. Measured by two econometrical models, from the overall and various work items, the effectiveness of social security to consumer behavior was analyzed in this paper.By multiple group models, the level of response to social security on different group perceived income and consumer behavior changes in statistical characteristics was researched. Concluded that coverage and the level of social security in rural areas will not only can alleviate the uncertainty of rural residents, increasing consumer spending; also conducive to development in rural economic, promote the improvement of living standards. But given the low income of rural residents, taken a large proportion by individual residents to improve rural social security contributions have all kinds of difficulty. We must increase endorsement of government finance to rural social security. First, increase the coverage of social pension insurance based on the low level for rural residents, to solve the problem of rural poverty in old age effectively. Then implement the minimum living security system in rural areas to protect the fundamental living right of low-income population. Then improve the level of rural pension, health insurance, minimum living standard, assistance on the basis of wide coverage, increase other public welfare to rural residents. And narrow the gap of the urban and rural residents on the right to social security. Promote the urban-rural integration, harmonious social construction and consumption increase, for the pilot of the unity of the social security on difference.This paper is organized as follows:The first chapter is an introduction section. Contents include:the background and significance of research; review of research in domestic and foreign; research method, framework for the article structure; may be innovation and inadequate in the article.Chapter second:Development and change in the course of China’s rural social security system. This chapter includes a simple comb for the main view about the concept of social security at home and abroad firstly, followed by review of China’s social security and rural social security and the development process, a simple review for the changes in the social security system. Then the European welfare state model and the development of social security are introduced briefly, and a brief overview of rural social security in developed countries, to Japan, Germany, France, for example, the advanced experience of building and Implications for China.Chapter Ⅲ:Mechanism analysis for social security to consumption of rural resident in China. First, social security can affect the incomes growth of rural consumer. Social security not only promote increasing of rural people’s income directly, it can also speed up the lifting of residents worry about the transfer of rural surplus labor and rural land management right. Secondly, social security can adjust the distribution of income of different social stratum, reduce the income gap, so affect the consumer behavior. In addition, social security also makes the future of rural residents have a guaranteed minimum income, reduce their uncertainty and increase consumption.Chapter Ⅳ:Development, changes and the reasons in consumption of rural resident. First, from the level and structure, the changes of rural resident incomes and consumption were analyzed statistically since China’s reform and opening up. And then, the correlation of the changes in consumer spending and economic system, the main problems of rural incomes and consumption, were analyzed. Secondly, analyzes the main reason of changes in consumer spending in rural areas. Using time-series data from urban and rural areas, a regression analysis and Granger causality analysis about the impact of transfer income on consumption were analyzed. The results show that the government transfer payments that in the light on the important towns in rural areas, not only promoted the expansion of income gap between urban and rural residents, but also is important reasons that caused insufficient consumption of rural residents.Chapter V:Empirical tests about impact on the effectiveness of social security to China’s rural household consumption. Firstly, this chapter introduces theoretical framework of three models on impact of social security to consumer expending, and have a brief review on existing research. Secondly, make use of macro data and micro-survey data, empirical test through two econometric models about effects on the social security to the rural consumer were made in this chapter. The results show that the expansion of social security coverage could benefit to expanding the consumption expenditure of rural residents currently. The most impact on social security to consumption behavior of rural residents come from the biggest living allowances for social assistance projects, but the main role of social protection coverage is still inadequate.Chapter VI:Conclusions and policy implications. Through theoretical analysis and empirical testing, we have five conclusions in this paper. In general, the low coverage of social security would weaken the consumption will of rural residents, and the low level of protection could hinder the growth of household consumption capacity, while the excessive gap between urban and rural social security is not conducive to expanding consumption on rural residents. Finally, some policy recommendations about the construction of China’s rural social security were made.The innovation of this paper seeks to include:1.About topics. In this paper, the consumption of rural resident as a starting point to research on rural social security, explore the impact of rural social security to consumer on the imperfect conditions. It broke the limitation of other researchers that study rural social security, or consumption of rural residents alone. Examination was done from economics, sociology, psychology and other research point of view. View from blend of subject, with a certain innovation in this paper.2. Perspective of research. This article will transfer income of rural residents as a representative variable on the micro-level of protection for the research to micro consumer issues; and the financial payments on social security, known as the macro level of security, for macro analysis, and considered the impact of the role of security coverage, so make research findings have a stronger evidence base.3. Theoretical point of view. The theoretical analysis and empirical studies have shown that the gap of social security between urban and rural resident caused by the gap of government transfer payments, and the lack of social security in rural areas, is an important reason that caused the lack of the spending power and insufficient consumption will of rural residents.4. Research methods. The structural equation model was used in this paper first time, for research the consumer economic issues related to social and psychological factors closely. In the application of research tools, this article has some innovation.