Research On The Influence Of Urbanization On Rural Residents' Consumption In Jiangxi Province

Since the 1990 s, China's economic growth is over-reliance on investment and exports, the contribution of consumption to economic growth is obviously insufficient, the final consumption rate shows a declining trend. However, the main reason of final consumption rate continued to decline is owing to the falling of the residents' consumption ratio, which is the main body of the final consumption. In general, the residents' consumption is about 80% of the final consumption. Up to now, the shortage of residents' consumption has become an important factor hindering China's sustained economic growth, while, to remove this obstacle, the key is to solve the problem of insufficient consumption of rural residents. Though expanding domestic demand is a long-standing economic state policy in China, but how to stimulate consumption, boosting the growth of the national economy is an important issue today.China's "Twelfth Five-Year Plan" is emphasized the importance of consumption in stimulating economic growth in the three carriages, proposed to build a long-term mechanism to expand domestic demand to further release the consumption potential, but also has put forward to actively and steadily proceed with urbanization as the main direction of promoting regional positive interaction and coordinating development. Up to now, as one of the power of driving economic growth in the future both in China even the world, urbanization has increasingly become the focus of attention of government and the social theoretical circle. The CPC has also made it clear that urbanization will be a significant engine and strategic focus of our country to expand domestic demand.However, the people-oriented urbanization is the meaning of urbanization, the achievements of development of urbanization should benefit the majority of residents, especially the rural residents. Urbanization is not only the town's population aggregation, it also affects all aspects of economic and society, bringing a series of economic effects, directly or indirectly, creating a huge consumption demand. The healthy development of urbanization can be used as an indirect means to expand the consumption of rural residents.The so-called with urbanization to expand the rural residents' consumption, that is to say by urbanization construction, adjusting the employment structure and demand structure all the time both urban and rural, broadening the channel of the rural residents' income, improving their income level radically, causing consumption growth; In the process of urbanization, the agglomeration and diffusion effect of urbanization will lead to the development of rural economy and by the demonstration effect of urban residents changes the consumer attitudes of rural residents, further expand the rural residents' consumption in our country, thus increase the amount of consumer demand in China.Jiangxi Province is located in the middle of our country, the overall level of urban development is not high, residents' consumption demand is relatively small. Promoting the urbanization construction has become an important breakthrough in expanding residents' consumption demand in our province. Jiangxi province as one of the Central provinces in China, occupying a very important geographical location in the "rise of central China" strategy, playing a pivotal role in linking the East and West, communicating with the North and the South, its development is closely related to the development of the central economic.Therefore, this paper takes Jiangxi Province as an example to study, the obtained conclusions can also provide some inspiration to other provinces on the expansion of domestic demand. However, from the currently available studies on the influence of urbanization on the consumption of the residents, rarely distinguished urban and rural residential were analyzed, but treated them as a big whole study. Considering the existence of urban and rural dual structure of our country, and in order to carry out a more targeted research, this paper only chooses to account for our province by the majority of rural residents as the research object. This is not only enriches the original research, but also puts forward a new perspective for the theoretical study on the residents' consumption and provide a theoretical basis for the promotion of consumption of rural residents in Jiangxi Province, has some theoretical significance. And, under the background of vigorous development of new urbanization and rural residents is lack of consumer demand, exploring the relationship between the province of urban development and rural residents' consumption can help to develop new consumption hot spots in our province, revitalizing rural consumer market and realizing sustainable economic development in Jiangxi Province is also significant.However, the influence of urbanization on rural residents' consumption, it's not only include the influence on the rural residents' consumption level, but also include the influence of the consumption structure of rural residents. Therefore, this article based on the related research results at home and abroad for reference, combined with the collected information and survey data, from two aspects to explore. The theoretical part of this paper has elaborated the urbanization mechanism for the consumption of rural residents, which is mainly from the "income effect", "cumulative effect", "demonstration effect" and "crowding out effect" to analyze. The empirical part is used the relative statistic data of the Jiangxi province from 1995 to 2013, basing on the construction of the vector autoregressive model(VAR model), using the impulse response function and variance decomposition method to analyze the dynamic effects of urbanization on the consumption of rural residents, and demonstrated this effect is remarkable, and has a long-term stable positive role. Therefore, we should continue to actively and steadily promote urbanization, but must strive to overcome the urbanization the negative effects in the process of urbanization and pay more attention to the continuous pulling effect of urbanization to promote rural consumption growth. In the empirical analysis of the dynamic effects of urbanization on the consumption structure of rural residents, we found that with the urbanization rate increasing, the expenditure of the consumption structure of rural residents will be increased, while the survival consumption increased more obvious, but the development and enjoyment consumption increased relatively scarce. Therefore in the process of urbanization we should pay attention to guide the rural residents to improve the quality of life, and increase the development and enjoyment consumption of rural residents, and gradually from a survival-based consumption structure upgrade to a development and enjoyment-based consumption structure in order to improve the quality of life.Finally, on the basis of the previous research, the author has put forward the following policy recommendations to promote the consumption of rural residents in the process of urbanization: first, actively promote the construction of new urbanization; second, change the development model of urbanization; third, promote Coordinated development of urban and rural residents' consumption; fourth, increase investment in rural education; fifth, change the concept of consumption of rural residents.