On Regional Differences Of Relationship Between Consumption And Income Of Chinese Residents

Consumption is the important engine of economic growth. Unbalanced regional economic development level causes the difference of income and consumption level. It restricts the development of regional economy. In order to promote the healthy development of regional economy, it is necessary to quantitatively and objectively understand the regional differences between consumption and income. This is also an important basic work.In the first, urban and rural residents’ consumption and income is placed with descriptive statistic in eastern, central and western. And then, this thesis mainly focuses on empirical research of the regional differences of relationship between consumption and income in China’s eastern, central and western in view of urban and rural respectively.The details are as follows:(1) Panel data parametric models of urban and rural residents in eastern, central and western, in which per consumer spending is explained variables and per disposable income is explanatory variables, are established. The results show that the tendencies of marginal consumption of urban residents in eastern, central and western increase in order. The values are 0.860971, 0.873352 and 0.8889367 respectively. Correspondingly, the tendencies of marginal consumption of rural residents in eastern, central and western are 0.912656, 0.906672 and 0.959816 respectively. The values in eastern and central are approximate equal, and they are less than the value in west.(2) Because the tendencies of marginal consumption in parametric models are fixed values which can’t reflect their dynamical changes, panel data nonparametric models for urban and rural residents’ in the eastern, central and western are established by the kernel method. Here, per consumer spending is the explained variable, and per disposable income is the explanatory variable. The results show that the fluctuations of the marginal consumption tendencies for urban residents’ in eastern, central and western are gradually weakened in order. The fluctuation of the marginal consumption tendency in eastern is long, the duration of fluctuation in western is highly sensitive. However, the fluctuations of the marginal consumption tendencies for rural residents’ in eastern, central and western are gradually enhanced in order.(3) In view of the relationships between income and consumption structure, the ELES models are established. In these models, per consumer spending of urban andrural residents in eastern, central and western are the explanatory variables, and 8 consumer spending, i.e. per capita food, per capita clothing, per capita housing, per capita household facilities, per capita medical care, per capita communications, per capita cultural entertainment, per capita other services and commodities, are respectively the explained variables. The result shows that: in both urban and rural residents, the central region has the highest marginal consumption tendency, the eastern second, the western is the lowest. From the point of the consumer spending, in the urban residents, food, communications,cultural entertainment and clothing are ranked top four for eastern residents’ marginal consumption tendencies. The central and western consumption level is similar,as food, communications,clothing and cultural entertainment are both ranked top four for central and western residents’ marginal consumption tendencies. In the rural residents, on contrast with the eastern and the central consumption level, the western has biggish difference. Food, housing and communications are ranked three for both eastern and central residents’ marginal consumption tendencies. However, food, communications and medical care are ranked three in the west.(4) Based on the above results and the current situations of different regions, some related suggestions are given.