Study Of Rural Financial Expenditure Impact On Rural Residents’ Consumption Structure

After the global financial crisis, government policy shifted from the "investment" and"export" the third carriage of stimulating economic "consumption",700million of the totalpopulation of Chinese rural residents’ consumption plays an important role for the promotionof rural economic development. Rural residents ’consumption growth will lead to an increasein domestic demand, thereby stimulating the development of production, improvement ofpeople’s income levels; this will promote the growth of farmers ’ consumption. Analysis toexplore the impact of China’s rural financial expenditure on the consumption of ruralresidents, the scale of financial support for agriculture and farmers’ consumption level, thestructure theory to help guide the intensity and direction of the rural financial expenditure, toestablish and improve the rural financial expenditure the mechanism has some guidingsignificance.Based on the economic theory and the conduction mechanism of fiscal spending inrural areas impact on rural residents’consumption; analyze the financial expenditure of thestatus quo in rural areas and rural residents’ consumption structure of the status quo. And theestablishment of the econometric model of fiscal spending in rural areas and rural residents’consumption structure, and finally draws conclusions and makes policy recommendations.Theoretical analysis: adjustment of the financial investment spending in particular,financial input in agriculture is directly related to the improvement of rural environment,improvement of farmers’ income, thereby affecting the expansion and optimization of therural consumer demand. Metastatic spending directly impact on the willingness of farmers’consumption and consumer expectations, thereby affecting the expansion and optimization ofthe rural consumer demand. Status quo description, we can see the total amount of1985-2010,China’s rural financial expenditure is increasing every year, but fiscal spending in rural areasthe proportion of total financial expenditure actually was a downward trend; consumerspending in absolute terms of life in rural areas continued to increase rural residents’consumption structure upgrade farmers’ consumption level and consumption of quality havebeen a qualitative improvement.The empirical results show that: in the long run, government spending on the physicalconsumption of rural residents have a certain squeeze into effect, crowding-out effect on ruralresidents ’ consumption of services, rural residents’ disposable income of rural residents inkind and services consumption role in promoting a larger role in promoting the consumption of rural residents, rural residents’ consumption growth and the optimization of theconsumption structure is more dependent on the sustainability of the increase in disposableincome of rural residents; the short term, the pre-consumption i.e., of consumption will havea positive impact on rural residents’ consumption in the short term, there are also moresignificant of the " ratchet effect ".Our government should further increase financial support for rural areas, enhance thecoverage of social security system from the system to ensure that the income of rural residents isexpected to improve in order to raise the average propensity to consume and optimize theconsumption structure, and improve the lives of rural residents’ level.