The Empirical Studies Of The Influence Of Social Security On Urban And Rural Residents’ Consumption

In terms of current world economy,the international financial crisis,which broke out in September 2008 and triggered a global economic crisis,is an important turning point.The world economy has entered the depth of transformation and adjustment period from the rapid development period that has lasted for many years.In terms of the economic situation in China,the economic development is also in step with the world economy.The economy has entered a new cycle from high-speed growth to medium-speed growth,China’s economic growth has entered a new normal.It puts forward new requirements for the optimization of the mode of economic growth in China.The rate of investment in China is high for a long time,even a few industries are overheated.At the same time,consumption rate continued to decline and this situation limited the healthy development of the economy in our country.Under the urban and rural dual system of China,the important reason is that the great gap between urban and rural residents,and the insufficient effective demand of residents consumption.Therefore,with the common view of the healthy development of national economy needs to expand domestic demand,how to effectively release the huge economic potential of residents consumption,and further expand domestic demand,it has become one of the most valuable subjects under the new normal Chinese economy.With the expansion of social safety nets in China in recent years,social policies,which is mainly represented by social security,participates in the redistribution of national income,and reduces the risk of people’s economic life.It has an important impact on the consumption of the residents,and has become another important means of expanding domestic demand.In summary,basing on the reform and optimization of social security system,expanding consumption by releasing the consumption potential of urban and rural residents through social security,it will provide new possibilities for achieving the aim of more effective and sustainable in expanding domestic demand.This paper is divided into five parts.The first part: the introduction mainly includes the background and importance of this research,the results of domestic and foreign researches,and the possible innovation points and the existing shortcomings.The second part of this paper is the theoretical basis and mechanism analysis of the impact of social security on residents consumption.On the one hand,we reviewed the western income theory,such as the absolute income hypothesis,the relative income hypothesis,the life cycle hypothesis,the persistent income hypothesis and the precautionary saving theory,and so on.On the other hand,it expounds the mechanism of social security on residentsconsumption from the following three aspects: Social security participates in the redistribution of national income,affects the income level of urban and rural residents and the income gap between urban and rural areas,and affects the residents’ uncertainty expectations and precautionary savings.This part laid the theoretical foundation for the below-depth study.The third part analyzes the present situation of the development of social security and the consumption of urban and rural residents.On the one hand,it summarizes the development of China’s social security and the prominent problems of social security expenditure.On the other hand,based on the total consumption and consumption structure,it describes the actual situation of consumption level of urban and rural residents in China,and makes a general comparative analysis.According to the study above,the fourth part constructs dynamic panel data models of urban and rural based on the panel data of 30 provinces(including the autonomous regions and municipality directly under the central government)in China from 2002 to 2013,and contrast analyses the impact of social security expenditure on consumption expenditure of urban and rural residents.In the fifth part,this paper mainly expounds the main research conclusions,and puts forward the corresponding countermeasures and suggestions.The research conclusion of this paper includes three aspects.Firstly,both urban and rural social security expenditure have a significant positive impact on residents consumption,and it is indeed an important way that raising the level of social security expenditure in urban and rural areas to promote the growth of urban and rural residents’ consumption demand.Secondly,the impact of social security expenditure on consumer spending is different between urban and rural areas,and residents’ income is still one of the most important reasons for the consumption of residents.Thirdly,The overall social security level in urban and rural areas needs to be strengthened,and the level of social security expenditure in urban and rural areas still needs to be further improved particularly.Furthermore,in order to further release the consumption potential of urban and rural residents in China,this paper puts forward relevant policy suggestions from four aspects:Firstly,increase the income of residents and reduce the income gap between urban and rural residents,improving the consumption capacity of urban and rural residents;Secondly,promote coordinated development of the social security system in urban and rural areas,enhancing the consumption confidence of urban and rural residents;Thirdly,increasing the proportion of social security expenditure moderately and improving the matching of government financial capacity and social security responsibility.