Research On The Impact Of The People’s Livelihood Expenditure Of Henan Province On The Household Consumption Of Rural Residents

When countries around the world were affected by COVID-19 in2020,the world economy has suffered considerable setbacks in the meanwhile.Considering that it is still in the epidemic prevention period,the Political Bureau of the Communist Party of China Central Committee urged the country to accelerate the establishment of a “dual circulation”development pattern in which the domestic economic cycle plays a leading role while international economic cycle remains its extension and supplement,because of the judgment of the international economic situation.If the development is based on the domestic economic cycle,the consumption potential of rural residents cannot be ignored.In recent years,topics related to people’s livelihood have frequently on the list of " trending topics",and fiscal spending on people’s livelihood has gradually benefited many rural residents in remote areas.It is conducive to constructing a domestic economic cycle that studying the impact of livelihood expenditure on rural residents’ consumption in Henan Province.I am sorting out relevant documents and analyzing the impact mechanism of different livelihood fiscal expenditure items on rural residents’ consumption from the theoretical level in this article.To analyze the current situation of financial expenditure on people’s livelihood and the living consumption of rural households by using the relevant data of 18 cities in Henan Province.Through mechanism analysis,this paper uses the data of 18 cities in Henan Province from 2010 to 2019 to build a dynamic panel model to verify the impact of the fiscal expenditure on the livelihood of rural residents’ family living consumption in Henan Province from the perspectives of total amount and structure.From the empirical results,it can be found that the government expenditure on people’s livelihood has a practical promoting effect on the living consumption of rural households in Henan Province.From the specific household consumption items to analyzing,when financial expenditure on people’s livelihood in Henan Province increases,it can promote the consumption of rural residents for education,culture,and entertainment,at the same time reduce the consumption for food.Meanwhile,it may also increase the savings of rural residents.From the perspective of specific livelihood expenditure items,education expenditure and housing security expenditure can effectively promote the living consumption of rural households in Henan Province.Besides,the overall fiscal spending on people’s livelihood has no significant impact on the consumption expenditure structure of rural households.Both education expenditure and medical and health expenditure can significantly reduce the proportion of rural household’s expenditure on food,which shows that it can reduce the Engel coefficient.Still,housing security expenditure will promote the consumption of food by rural households.At the end of the thesis,according to the analysis and empirical results of the current situation of Henan’s livelihood expenditure and rural residents’ consumption,in order to maintain a stable growth of fiscal expenditures on people’s livelihood and improve the consumption level of rural residents,suggestions will be made from the following aspects:maintaining a stable growth of people’s livelihood expenditure,improving the structure of fiscal and people’s livelihood expenditure,and changing the consumption habits of rural residents.