Study On The Condition And Influencing Factor Of Rural Consumption In Anhui Province

Promoting household consumption and improving people’s livelihood are two themesof current China’s economic development, and they are closely linked. This thesis delvedinto consumption of rural residents in Anhui and its factors through the method such asstatistics, econometrics and investigation, and presented recommendations for promotingthe consumption and improving the life of the rural residents at the end. Specifically, thisstudy did the following work:First of all, the analysis of20years data （1988～2008）about rural residents’ livingfrom Anhui Statistical Yearbook shows that the consumption of Anhui rural residents hasthese features: the consumption keep rising and changes periodically whith the change ofagricultural policies;, the consumption level of Anhui rural residents lagged but has largepotential compared to rural residents of Jiangsu and Zhejiang provinces, or urban residentsof Anhui.Second, the analysis whith ECM model show that: there is stable and long-termequilibrium relationship between consumption and income in rural areas of Anhui, andthere is a strong “ratchet effect” of rural consumption; in different income sources, wageand household operating income are the main factors that affect consumption, andconsumption will rise by0.45percentage points if operating income of rural householdsrise by1percentage point.Third, it is found that heavy burden, poor consumer environment, liquidity constraints,cultural qualities, and working as migrant workers are non-income factors of consumptionthrough the household survey of village of Long An in Anqing.Finally, on the basis of the above analysis, recommendations are proposed forpromoting rural consumption such as increasing revenue, improving the consumptionenvironment, establishing a social security system and a rural credit system, and improvingthe quality of residents.