Analysis Of Expending The Consumer Demand Based On The Urban-rural Income Gap Of The Expansion

Since the reform and opening-up, our country economy has made rapid development for many years, with the economic development reaching to the great achievements and the high growth of residents'income and consumption. Economic operation mechanism also has changed dramatically, establishing the market mechanism to be the leading resource allocation system. The role of consumer to economic growth is becoming more and more obvious, so the consumption theory research also has a more and more important position. But at present our country economy has two big problems: the irrational income distribution and the insufficient social effective demand, which have produced many economic development problems.Theoretically speaking, Marx, Keynes, and Kuznets , raised the income gap as a major impact of the increase of consumption. Currently there are typical dual economic structure in China, There is a huge gap in urban and rural areas in terms of both economic development level and income level., which seriously affected China's consumption. Therefore, in terms of analysis of the reality of our country, under the direction of the classical theory, this article describes the present situation of the urban-rural income distribution gap. Then the insufficient consumer demand and this article researches the relationship of the income distribution gap and the consumption demand between the rural and urban residents .There is a big gap between urban and rural residents, which has become the main factors restricting China's economic growth. Then this article establishes the econometric model to analysis the relationship of the two factors.Therefore, this article took the urban and rural residents income distribution and consumption as the research object in China, tried to find the relations of the urban and rural income distribution gap, and propound policy recommendations from the angle of narrowing the income gap.