Jiangsu Farmers Consumer Research

Under buyer's market, consumption problem has been the most important in economic field. This paper, firstly, shows that the life level of peasants in Jiangsu province is higher than that of the past, but there are remarkable differences between urban and region, among the south, middle and the north of province. Secondly, on analysis the variation of the peasant consumption composition in Jiangsu, the conclude is the peasants have generally been comparatively well-off. The author uses cross-section data on income and expenditures of rural household of iiangsu in 1999 for further analysis and prediction it, and obtains price and income elasticity of consumption and consumptive trend in future by extended linear expenditure system. Thirdly, considering the external environment and internal supposal of peasant consumption, the paper draws that income, especially stable income is the most primary factor to consumption by the models of consumption function (Friedman's permanent income hypothesis and Modigliani's life cycle hypothesis). The fourth, discussing the relationship between consumption and economic growth, the result is the variation of consumptive level and composition has a guiding rule to adjust economy structure. The fifth, to increase peasant's consumption depends on increasing of their income. The study comes up with some corresponding measures about increasing peasant income. Finally, the author proposes the reasons of being short of demand in rural region and relevant policies should be taken.