Analysis Of Tends And Causes About Propensity To Consumption Of Residents In Xinjiang

Consumption, investment and net export are three components of one country's GDP. Consumption is the most important part. In the effect of Financial Cress , how to increase the demand of motherland and push the growth of economy have become the important work that need to be solved in the running of macro economy from now to future.With the deep running of reform, the income of Urban and Rural Residents have a great increase . But in the same time, the propensity to consumption is decreasing which make the demand of Resident going down. It has become the negative factor of economy growth of Xinjiang. Nowadays, the problem of demand decrease has been intentioned by all the people in the country.First, studying the consume theory carefully with the fact of Xinjiang and analyzing the tend of propensity to consumption and factors that affect it ,exposing it's law not only have the value to consume theory but also have true sense to make the economy of Xinjiang growing faster and better.Second, analyze the tend of the propensity to consumption of residents in Xinjiang, the propensity to consumption has been decreased from the year of 1985.for example the average consumption of Urban Residents decreased from 0.8857 in the year of 1985 to 0.7586 in the year of 2008;The marginal propensity to consumption of Rural Residents decreased from 1.193 in the year of 1987 to 0.846 in the year of 2008.Finally, research causes of decreasing of propensity to consumption at normative aspect and positive aspect, which are the growing slow of income of people, the gap expanding of income, the grade of consume structure, the increasing of money saving, the changing of price and the poor ability of loan etc.In summary, this paper believes that increasing the inhabitant income,regulating the income distribution,especially for the peasant and people with low income; expediting the marketing of the social insurance,all of these improve the propensity to consumption of inhabitant, optimize the consumption structure,and finally lead to the Xinjiang economic developing consistently,steadily and healthily.