Countermeasures And The Main Constraints About Consumption Of Rural Residents In China

From reform and opening up, Chinese GDP increases rapidly. The average annual growth rate of GDP is over 9%, and the comprehensive national strength becomes more powerful and people's lives improve a lot. But to promote economic growth, from the view of consumption, investment and net exports, that is three "troika", the contribution is unbalanced, the investment being too large but the consumption too small, in which the lack of consumer demand in rural areas were more prominent. After financial crisis, countries have introduced a series of policies such as "The Appliances to the Countryside" to promote the rural consumption, so the rural consumption market have benefited a lot. However, how to promote the rural consumption effectively at present situation and solve the problems about it is very important for expanding domestic consumption and stimulating consumption demands.This paper holds that income factor is the most crucial one among all the other factors which can influence China's rural household consumption, despite the fact that income factor is not the only reason because there are some other important factors such as prices of agricultural products, consumer environment, and national financial investment in the agricultural finance and so on. We can obtain a more realistic conclusion when we analyze the constraint of rural consumption from a multi-angle, multi-perspective way. In addition, with the complexity of China's rural environment, we should determine which policies will open the rural consumer market. Drawing on Western consumption theory and former conclusions, this paper illustrates the influence of rural residents'income, price of produce, the financial expenditure on agriculture and consumption environment on the rural consumption on the basis of Chinese consumption at present situation. The paper constructs models of Chinese rural consumption function and explains the factors that restrict rural consumption by using the date from 1978 to 2008, theoretical analysis and quantitative analysis methods. Finally, the author put forward countermeasures and some suggestions to promote the consumption of Chinese countryside residents.