Analysis On Different Consumption Structure Between Coastal And Inland Urban Residents In Shandong Province

Investment, consumption and exports are three carriages which stimulate the economic growth. In China current economic situation, we mainly rely on exports to drive economic growth in long time. Facing the international and domestic situation, trade protection, economic crisis or other factors make us realize that this pattern of development is no longer suitable for China now. In this case, the expansion of domestic demand will be an effective way to protect the stability of China’s economic development. China’s government work reports in2012specifically proposed to expand domestic demand, especially consumer demand.Its steady and rapid development is not only the China’s long-term economic fundamental standpoint but also the focus of the annual work. All along, the level of economic development in Coastal areas is higher than inland areas’of Shandong Province with excellent location and opening-up policy, so as the proportion of resident consumption. In2010, the urban resident consumption rate of Coastal areas reached68.0%, compared with63.6%in inland areas, but they all are facing the problem of declining consumption rate. How to expand effective demand of residents, narrow the differences of urban residents consumption between coastal and inland areas, and promote economic development the sustainably and rapidly of Shandong Province is the foothold of this study.Foreign scholars provide a large number of theoretical basis from the research results domestics and abroad, but some are not in line with the actual situation in China. Although the domestic scholars on consumption problem for a large amount of research, research scope including the national and even some cities, It also has a lot about Shandong Province, but most of these studies focus on the analysis of influencing factors and trends of consumption structure, not to analyze the differences in consumption structure from the coastal and inland perspective and there is no such refinement according to the various cities. It is necessary to conduct in-depth study on the two regions because of unbalanced economic development in Coastal and inland areas. Selecting the coastal and inland cities in Shandong Province as an object of study, I hope to provide theoretical support and policy recommendations to promote the development of regional demand market and economic growth in order to regional coordinate economic development in Shandong Province.The paper mainly research on coastal and inland urban residents’consumption level and structure in Shandong Province. First, we sort out the theoretical and empirical research on consumption from domestics and abroad and give some detailed study of domestic scholars on this issue. Then we use static analysis method to analyze the issue basic on the consumption structure of urban residents in Shandong Province. Description of the analytical method and ELES model are used to analyze the consumption level and consumption structure in different income groups of urban residents in Shandong Province in2009. The results show that the consumption level and consumption structure of residents of different income groups exist a large gap. With the residents’ income levels increase, consumer spending also increase, but the marginal consume propensity gradually reduces. Household equipment and services, health care, transportation, telecommunications, education, culture, entertainment, These five consume spending proportions will have increased significantly. From the marginal consume propensity in and elasticity for demand and income perspective, when urban residents’ basic needs are met, more concerned focus on how to improve of the quality of life and the spiritual and cultural level, and the consumption structure is moving to a higher level.Thirdly, we take dynamic analysis of the consumption structure of urban residents in Shandong Province from2000to2011through the data such as annual per capita disposable income and per capita consumption expenditure and consumer spending. From the above-mentioned data, we conclude that in the past11years, with the rapid economic development in Shandong Province, residents’ income and consumption levels continue to improve, the total consumer spending has increased considerably. View from the change in the consumer spending, housing, transportation, telecommunications, healthcare,education, cultural and entertainment services, these consume proportion in a rising tendency, the proportion of food, clothing, and other goods and services is declining.Fourthly, we analyze on consumption structure differences among the coastal and inland urban residents’based on2000-2010panel data. We find the coastal and inland or coastal cities or inland cities both exit a large difference and then the reasons. Overall, the level of consumption in coastal areas and marginal consume propensity both higher than the inland areas, the consumption structure is more reasonable. Clothing, housing, education, culture, entertainment, healthcare marginal consume propensity in coastal cities significantly higher than inland cities, the consumer’s focus shifted to housing, education, and health concerns and consumption on development and enjoyment higher than inland cities. Finally, we propose the relevant policy recommendations to improve the level of consumption in urban residents in Shandong Province in order to narrow the gap between the different cities, improve residents’ consumption structure, expand consumer demand, provide a lasting impetus to the economic development in Shandong Province.