Research On The Impact Of The Basic Endowment Insurance System And The Consumption Of Urban Residents In Hunan Province

For a long time,high savings and low consumption has been the important factors that restrict the sustainable and healthy development of China's economy.Reasonably expanding domestic demand and stimulating consumption are important ways to transform economic growth mode and promote economic development.In the long-term mechanism of seeking to boost domestic demand,social security has an unignorable effect,the basic endowment insurance system,as the important part of social security system,is closely related to the consumption behavior of residents.This paper aims to study the effect of the basic endowment insurance system on the urban residents consumption by taking Hunan province as an example,which is important to deepen the reform of the endowment insurance system,to expand the consumer demand,and thus to promote the economic and social development.This paper discusses the influence of the basic endowment insurance system of Hunan province on the consumption of urban residents through theoretical analysis and empirical analysis.First,we combs the theories related to endowment insurance and consumer behavior,and studies the influence mechanism and path of them;then,analyze the current situation of the basic endowment insurance system and residents'consumption;finally,based on Felstein's extended life-cycle theory,we adopted the panel data of 14 in Hunan province from 2006 to 2016 and selected indicators such as consumption expenditure,disposable income,pension expenditure,coverage rate,replacement rate,etc.,and conduct the empirical analysis by weighted least-squares method.The empirical results show that the basic endowment insurance system has a significant positive influence on the consumption of residents,urban residents'expenditure and pension replacement rate are in positive correlation with residents'consumption.Therefore,we will accelerate the improvement of the basic endowment insurance system,gradually raise the level of basic old-age security,and build a multi-pillar endowment insurance system,which will help to release household savings and stimulate consumption demand in Hunan province,thus promote economic growth.