Research On Regional Difference Of Consumption Elasticity Of China Economic Growth

In macroeconomic policies, the consumer demand, the investment demand and the net export demand constitute the "Troika" which promotes the economic growth. In this troika, the role of consumer demand is the most important. The consumer demand occupies the largest share in GDP. Fundamentally speaking, the investment demand is only caused by consumer demand, and is determined by consumer demand. In essence, the net export is a kind of consumer demand which is from foreign departments. Consumption can not only pull economic growth from the demand side and promote economic development, but also can create production capacity and guide industrial structure restructuring. Therefore, in the current economic conditions, under the background of the global economic crisis which is caused by the U.S. sub-loan crisis, raising the consumer demand has become the emphases which of China's "capital growth, expand domestic demand".Through analyzing of the theory and the practice, the author firstly studies the relationship between China's economic growth and consumption. Secondly, the author gets up the long-run equilibrium model and short-term error correction model of economic growth and consumption by using the Cointegration Theory. By combining with Elasticity Theory, the author gets long-term and short-term flexibility of consumption, that is, the sensitivity of the economic growth changing in the level of consumption, the pulling effectiveness of consumption to economic growth. The author proposes the conception of "Flexibility District of Consumption" and studies the spatial difference of them in long-term and short-term. Lastly, the author puts forward some suggestions for these different areas. It has great theoretical and practical significance for the effective implementation of the policy of "security growth, expanding domestic demand" in current economic conditions. It provides a reasonable space guide for the effective and targeted implementation of regional consumption stimulation and regional economic growth.