The Nexus Of Price And The Inequality Of Urban Food Consumption In China

Food consuming is the basic requirement of mankind, food consumption level concerns national nutrition level and healthy level, also affect the government food policy of agricultural products of production and marketing, prepare , the adjustment of agricultural production resource and production structure. Now, the food consuming of the resident of our country is occuring a series of change to produce important influence for agricultural structure as the change of major product and food consuming in agricultural products. For our country of agricultural products, study the area discrepancy of resident food consuming and change , as preparing the agricultural development that meets different area resident food consuming , policy, the circulation policy of agricultural products and food consumer policy have important realistic meaning. In affecting the area gap research of resident food consuming, a lot of scholars have carried out fruitful research for this, however mostly trend is economic variable reduction with the independent sequential variable of various places is the level of base issue with certain time, use corresponding price index, adjust for variable. Between different area purchasing power of money difference don't pay attention to don't notice price the influence for area gap.So, based on purchasing power parity theory, this article studied the relative price of each area in China and its influence on the inequality of food consumption of urban residents. Using the prices of the main goods and services which urban people consumed and their proportion of consumption of the residents from each area in China, we calculated the relative price and found it diverged greatly which was dominantly determined by food price and the food consumption structure of consumers from each area.Compared to nominal consumption, great change took place while we adjusted the nominal consumption by PPP approach to get the real consumption of each area. Evidence showed that price has reduced the consumption inequality among different areas to some extent. With the components of each group increasing, difference of bad index between real consumption and nominal consumption became less and less. During the inflation period of 1993-2004, price increased its contribution rate to Gini coefficient and bad index. Middle part and Western part showed excellent quality of "convergence club ", which was intensified by eliminating the relative price based on PPP theory and the character of Western part is much more significant especially after relative price eliminated. The auto-regression of the standard deviation revealed, considering the relative price nearly slowed down 2 percent of the growth of the inequality of the consumption of urban residents of our country, so we can by both approaches of relative price and consumption to reduce the inequality of consumption of urban residents in China.Finally, according to the above analysis result, and gave some suggestion.