How Does Social Security Affect The Consumption Of Rural Residents

Under the background that consumption will be a driving force of the economic growth in China′s new era,the increase of rural consumers′demand has great significance for promoting economic development,shifting the momentum of economic growth and realizing the domestic demand-driven growth.But at present,the rural consumption market in China has not yet started,and the consumption demand is difficult to release,which directly restricts the sustained and healthy development of China′s economy.The emergence of this phenomenon is plagued by many factors,but to a large extent,it is rooted in the imperfection of the social security system in China,thus restraining the consumption demand and consumption willingness of rural residents.The social security system as an important means to improve living standards and promote consumption growth,its importance has been widely attention around the world.Therefore,the study of the relationship between rural social security and rural residents′s consumption in China has important economic and practical significance for stimulating rural residents′s consumption,expanding the rural consumer market,promoting rural economic development and enlarging domestic demand.Firstly,this article reviews and summarizes corresponding domestic and foreign literature concerning the impact of social security onresident′s consumption;Secondly,on the basis of discussing the status quo of rural social security and rural residents consumption in China,this paper expains the influence mechanism of social security on resident′s consumption behavior from three aspects,including income distribution effect,wealth substitution effect and induced retirement effect.After that,based on the regional differences of our country,the author selectes the provincial panel data(2002-2016)and makes an empirical analysis of the impact of social security on rural residents′s consumption.The empirical results show that,the social security has a weak positive effect on rural resident′s consumption in the central and western regions.And the effect in the central region is larger than the western region.However,the coefficient of social security expenditure in the eastern region has not passed the significance test,which indicates that there is no effective mechanism between the social security and the consumption of the rural residents in the eastern region.Finally,the article puts forward relevant policies and suggestions on social security to promote rural residents′s consumption from the aspects of increasing investment in rural social security funds,expanding social security coverage,improving social security management operation and supervise mechanism,enhancing rural residents′s income,innovating rural land security and so on.