A Research On The Effect Of Rural Residents’ Income On Consumption In Chongqing

Investment, consumption and export trade are"Troika"driving the growth of acountry’s economy. However,since China’s economic reform and opening growth hasbeen mainly driven by investment,and consumption was in a weak state. As a emergingeconomic powers, it is difficult to guarantee the sustainable development of economywithout domestic demand, but depending on exports and investment,. At present,China’s biggest stumbling-block in economic growth and development is insufficientdomestic demand, while the deficiency of domestic demand is mainly manifested in theinadequacy of dweller consumption. In our country, rural population occupies70%ofcountrywide population, but the consumption level of farmers is far lower than that ofurban residents, and the rate of farmer’s consumption growth is slow, the gap withconsumption of urban residents continues to wide. How to expand the consumptionmarket especially rural consumer market, it has extremely vital significance to keep theeconomy developing nice and fast and promote the endogenous power of economicgrowth.As the only municipality in the Western region of China, Chongqing has vast ruralarea and agricultural population. In recent years, the consumption of urban residents isdecling, which shows weakening trend in supportting the consumer goods market, butthe potential of rural consumer market is very large, therefore enhancing farmer’sconsumption plays an important role in expanding effective consumer demand. In thefactors of restricting the consumption, income is the deciding factor,it not only affectsthe overall living standards of farmers, but also directly relats to the rationalization ofconsumption structure. put income as a starting point, to study the impact of income onconsumption in Chongqing and straight out all aspects of the income of farmers onconsumer demand, will not only provide the empirical basis and countermeasures forgovernment startting rural residents consumption, but also provide useful experience forresearching China’s Western region.This paper takes Chongqing city as the research object, based on the theory ofreviewing dynamicly rural residents’ income and consumption, firstly, it analysed thepresent situation and characteristic of rural residents’ income and consumption inChongqing city, then pointed out farmers’ consumption problems and the importance ofincome in the farmers’ Consumption. Secondly, this paper analysised income on the consumption level and structure factors with consumption function systemly. Then, itanalyses income on consumption level and consumption structure from different type ofincome, different sources of income and rural income of rural residents inChongqing,discovering the factors that restricting the Chongqing rural residents’consumption. Finally, the article elaborated systematically the main conclusion, anddraw a conclusion that promoting consumption and transforming the consumption ideaof rural residents.