The Research Of The Rural Residents’ Consumption In Shandong Province

Since the Third Session of the Eleventh Central Committee of the Party opening, driven by China’s Troika ---- exports, investment and consumption, we have made remarkable achievements, such as the rapid development of the national economy, the increasing overall national strength. People’s living standard have a qualitative leap, which builds a solid foundation for achieving the goal of completing the building of a moderately prosperous society in all respects by 2020 and per capita GDP more than double by 2010 for us. However, since the 2008 global financial crisis, the international economic situation gradually decline, for China, alone by exports and investment to promote economic seems inadequate, expanding domestic demand has become an important starting point to maintain China’s economic growth. As a socialist country, our country has a large population and a majority of which are farmers. The urban consumer market is gradually saturating, the rural consumption market has shown great potential and broad prospects for the situation. Compared with the urban, economic of the rural areas is underdeveloped, people of rural areas generally earn low incomes and social security system is not perfect, therefore, growth in consumption of rural residents develops more slowly. December 18,2015, meeting of the Central Economic Work Conference stressed that "using new initiatives with new ideas ferret out potential domestic demand, continues to expand consumer demand." Under the government raising China’s New Normal background, expanding domestic demand has become the new engine of our economy. Shandong Province is China’s coastal economic province, it is also a major agricultural province, farmers accounted for most of the province’s population, economy grows fast, therefore, this article will explore the current status of consumption of rural residents in Shandong province, make a scientific research and evaluate the opportunities and challenges in the rural consumer market of Shandong Province, find the real constraints of rural residents’ consumption, given the appropriate policy recommendations.In this paper, with reference to the relevant literature of rural consumption, with the main use of theoretical analysis, comparative analysis, qualitative and quantitative analysis, empirical data analysis, I have analyzed the present situation of rural residents’ consumption in Shandong province and the influencing factors. The study is divided into the following sections; the first part includes research background, significance, content, methods and literature review both at home and abroad. The second part introduces the meaning of the related consumption theories, mainly about the research results of the economists and scholars. The third part is the status of consumption of rural residents in Shandong province, analyze from the consumption level, the structure and the concept of urban and rural residents, with the comparative analysis we found the problems of rural residents’ consumption in Shandong province. The fourth part is the consumption level regression analysis. The fifth part mainly through the data processing and the establishment of ELES model, make a quantitative analysis of the consumption structure. By regression analysis and ELES model analysis, we can make the following conclusions:if the rural residents’ per capita net income cannot be guaranteed, the rural residents cannot form a reasonable income and consumption; consumption hot spots does not have the scale, the potential consumer market yet to be developed, such as the automotive, information industry based emerging consumer market development is slow; rural residents’ consumption of health care, transportation, communications, culture, education, entertainment and other developmental consumption has increased in the share, but still shows the unreasonable phenomenon in consumption structure; the people’s traditional "first income, then expenditure" consumption concept has not completely changed, "excessive consumption" in rural areas is in a vacuum. The last part contains the policy recommendations, first, coordinating the development of agricultural modernization, protect farmers’ income revenue; second, strengthening the social security system, eliminate the farmers’ consumer concerns; third, developing the rural consumer hot spot and adjusting the consumption structure; fourth, optimizing the consumption environment, changing the attitudes and patterns of consumer.