Analysis On The Evolution Mechanism And Improvement Of Urban And Rural Consumption Disparity In China

Since the reform and opening up in1978, China’s economy is advancing two major transformations with industrialization and market economy marked, It has brought a huge change to China’s economic development and people’s living. With the rapid growth of total economy, China’s economic development still faces many problems. Consumption, as one of the three major components of GDP, is essential for the benign development of our economy. At present, however, the non-balanced development of urban and rural areas in China has highlighted the China’s urban-rural dual economic structure issues, and the gap between urban and rural consumption keeps expanding as an important characterization factors. The gap not only inhibits the development of the rural economy, but also causes the current lack of demand in China’s macro economy to a great extent. Therefore, the paper uses the consumption gap between urban and rural as the object of study, through clarifying the characteristics of its evolution to analyze the inherent mechanismThis paper includes three aspects. First, compares the China’s urban and rural residents’consumption, and demonstrates the consumption of rural residents is much lower than urban consumption in quantity, per capita, tendency and structure. The consumption gap between urban and rural is very significant and there are regional differences. Second, research by combing the classic consumer theory and China’s urban and rural consumption, classification analysis of influencing factors of many urban and rural consumption gap, combined with the development characteristics of China’s economic transition, with our distinctive urban and rural consumption gap mechanism of evolution; Third, based on the evolution mechanism, set the regression model of the impact mechanism of the country as a whole and the Province of urban and rural consumption gap, combined with the Kuznets inverted U-curve "theory, the inflection point of the trajectory of the evolution of the gap between urban and rural consumption. On the basis of the content in the above study, summed up the process of industrialization in the developed economies "to subsidizing agricultural policy of experiences, put forward policy recommendations, including to increase the income of rural residents, increasing rural Midwest public investment, balanced urban and rural development, as well as region-specific strategies.This study shows that the income gap between urban and rural areas as well as the characteristics of consumer behavior differences between urban and rural consumption gap between the two main influencing factors; unfair our government in the context of industrialization and economic transition economies in transition, in both rural and urban inputs, resulting in urban and rural areasdual economic development imbalances, this mainly reflected the slow growth in the income level of farmers, and the lack of consumer willingness and ability to inhibit the consumption of rural residents in China, resulting in a worsening gap between urban and rural consumption. For long-term trend, with the economic development and people’s living standards improve, the gap between urban and rural consumption in2006getting into a downward spiral, and the three regions of eastern, central and western turn "Kuznets inflection point", has extremely important policy implications for the study of urban and rural consumption gap and even the gap between urban and rural areas around China’s urban-rural dual economic structure transformation strategy and policy should also be based on this.