Research On Urban Residents' Consumption Function And Consumption Composition Of Anhui Province

The GDP of a country is made up of consumption demand, investigation demand and the export demand. Consumption has played an important role. Because of the imbalance regional development and the huge economic gap between eastern and western areas, so to activate consuming market will focus on the western provinces. As a province locates in the middle of china,the development of anhui province's consumption market becomes increasingly significant to the development of national economy.Based on the GDP and retail sales of consumer goods,Anhui ranked fourth amond six central cities of China. So the consumption quality's improvement and the consumption structure's optimization will be conducive to the country's economic growth.Data of Anhui province from the year 2000 to 2007 shows that the proportion of final consumption expenses of GDP,which remained above 55%,supported the growth of GDP.But the consumption rate is declining in recent years.Because of the imbalance development among the 17 cities of Anhui province and the lack of this study,this paper choice the urban residents of 17cities as the research object.lt is hoped to provide some policy for the development of western consumer markets and the economic development of Anhui province and the balance economic development of 17 cities.Some foreign scholars provide a large number of theoretical basis about the consumption,but they didn't research the actual situation of China.In addition,Chinese scholars have done a lot of research about consumption of province,including Anhui,but they are not detailed to cities. So it is necessary to carry out further research on Anhui.According to Keynes's absolute income function:C=a+bY.This paper will study two aspects:marginal propensity(b) and income (Y).First, under the guidance of the theory, the paper give a comprehensive analysis about the consumption of urban residents in the 17 cities. The 17 cities are classified into the high consumption level, the middle consumption level and the low consumption. Second, the paper find out three typical cities from the classification cities. And it reveal the gap of different cities by comparing the marginal propensity, elasticities and the impact of income gap between urban residents. Finally, put forward some proposals according to the causes of differences among the cities.The research methods of this paper is cluster analysis which is classified the 17 cities,ELES and principal component analysis,which is studied the consumption structure.