Research On The Influence Of China's Base Endowment Insurance On Residents' Consumption

Since the reform and opening up,consumption,investment and net export have become the three driving forces that promote the sustained and rapid economic development of China.however,Chinese economic development has been excessively dependent on export and investment,consumption has continued to decline in recent years.The serious deficiency of consumer demand has become a hindrance in Chinese economic development process,and the high savings rate of residents is one of the main reasons for Chinese insufficient consumption.The key to effective expansion of consumption demand is to conduct in-depth study on the residents' saving motivation and consumption behavior.The view that pension is the main motivation of residents' savings has been recognized by academic circle and social research institutions.The endowment insurance system is a kind of social security system which guarantees the basic life needs of the elderly people who are retired and unable to work.Endowment insurance can affect residents' consumption by influencing the long-term income expectation of the whole life cycle and the motivation of residents' preventive savings,etc.So the study the impact of endowment insurance system on the residents' consumption is of great significance in stimulating consumption,expanding domestic demand,improving and perfecting the system of endowment insurance and promoting the healthy development of Chinese economy.In this paper,using the basic endowment insurance system of China as the breakthrough point,the baseline survey data released by Chinese Health and Retirement Longitudinal Study(CHARLS)in 2013 is used to study the effect of endowment insurance for residents' consumption.At the same time,it also distinguishes several representative consumption items to further study the impact of endowment insurance on consumption structure.Using stata14 software to make OLS regression,the results show that basic endowment insurance has a significant positive affection on total household consumption,food consumption,clothing consumption and medical consumption,but the consumption of higher level demand,such as education and entertainment,is no significant relationship.Besides considering Chinese urban and rural areas have considerable difference in the economic development level,the type of endowment insurance,consumption habits?cultural level and other aspects,the whole sample further divided into urban and rural research groups to more accurately study the effects of endowment insurance on consumption.Urban sample regression results shows that Endowment insurance has obvious positive influence on total household consumption,food consumption,medical consumption,and entertainment consumption,and the rural sample regression results are basically the same with the whole sample.These show that although endowment insurance has certain promotion effect to residents'consumption,the security efforts still need to strengthen.Finally,based on the empirical evidence,this paper puts forward some policy suggestions to improve the endowment insurance system for promoting residents' consumption.