Shanghai Urban Residents' Income Gap Between Consumer Demand Studies

The economy of Shanghai has been developing with a high speed since 1990's. The inhabitants'income level and consumer demand is continually rising. The consumption structure of Shanghai urban inhabitants is improving steadily. Although the final consumption has become the most important factor driving economic growth instead of investment, the consumption rate is still significantly lower compared to other international cities with same level of development. Particularly the inhabitants' consumption rate has always been a steady low level in recent years. In long run, the inhabitants'consumption is the real driving force of promoting Shanghai economic development continually and healthy.First of all, by analyzing in consumer theory abroad and China, we find out the conclusions that the widening of the income gap will lead to inadequate consumption. Then it presents the subject-selecting background, study purpose, significance, train of thought and methods.Next, it makes an analysis of the income and consumption of Shanghai inhabitants. Then there is effect mechanism from three aspects, including the consumption structure, rate and propensity. It presents that the enlargement of urban residents' income gap is bad for the growth of consumption demand.Finally, it take Granger causality test to measure and carry on the relation between income and consumption. On the basis of this conclusion, we put forward some corresponding policy at the end of this thesis.