Study On The Influence Of Rural Financial Development On Rural Residents Consumption In Ningxia

Restricted by resource endowment and economic development level,rural residents in Ningxia have a lower consumption level and an imperfect consumption structure compared with urban residents in Ningxia and rural residents in the whole country.The function of resource allocation of rural finance determines that it has great significance to rural residents’ consumption.Under the background of "double cycle" with domestic big cycle as the main body,developing rural finance is not only conducive to releasing the consumption potential of rural residents,improving the quality of life of rural residents,but also conducive to promoting rural revitalization.In view of this,taking Ningxia as an example,it is worth studying to explore the influence of rural financial development in underdeveloped areas on the consumption level and consumption structure of rural residents.This paper firstly combs domestic and foreign literatures related to rural finance and rural residents’ consumption to provide the literature basis for the full text.Under the guidance of rural finance theory and residents’ consumption theory,this paper defines the concepts of rural finance,rural financial development,rural residents’ consumption level and consumption structure to provide theoretical guidance for the full text.Secondly,relevant statistical data are applied to summarize the current situation of rural residents’ consumption and rural financial development in Ningxia,which provides a realistic basis for the whole paper.Thirdly,the influence mechanism of rural financial development in Ningxia on rural residents’ consumption is constructed,and relevant hypotheses are proposed to provide a theoretical basis for empirical analysis.Finally,using the relevant data of the five northwestern provinces and the error correction model,the paper empirically tested the impact of rural financial development on rural residents’ consumption in Ningxia from the perspective of time series and regional comparison,and drew relevant conclusions and countermeasures.The statistical analysis shows that:(1)the total consumption of rural residents in Ningxia increased year by year since 1991,but the Engel coefficient decreased,the consumption structure gradually improved,the categories of durable consumer goods increased,and the consumption increased year by year;However,at the same time,there is a large gap between urban and rural consumption,slow growth of consumption rate,unstable growth and other problems,to a certain extent,the consumption demand of rural residents.(2)The balance of agriculture-related loans in Ningxia increased,the scale of financial development expanded,the total assets of small and new-type rural financial institutions increased,the total output value of agriculture,forestry,husbandry and fishery increased,and the financial support to agriculture was significantly effective;However,there are also problems such as low efficiency of rural financial development,unstable structure of financial development,insufficient power of financial services,low proportion of property income of rural residents,and lack of innovation of rural financial products,which restrict the role of rural finance in promoting residents’ consumption.The empirical analysis shows that(1)From the perspective of time series,from the perspective of consumption level,financial development scale,financial development efficiency and per capita disposable income in Ningxia have a positive impact on the consumption level of rural residents,but the financial development structure has a negative impact on the consumption level of rural residents.From the perspective of consumption structure,the scale and structure of financial development in Ningxia have a positive effect on the optimization and upgrading of rural residents’ consumption structure,but the efficiency of financial development and income level have no positive effect on the proportion of rural residents’ consumption,which contradicts the necessity of vigorously developing rural finance and increasing rural residents’ income.(2)From the perspective of regional comparison,in terms of consumption level,the promoting effect of the scale of rural financial development,the efficiency of financial development and the per capita disposable income on the consumption level of rural residents in Ningxia is relatively low in the five northwestern provinces,while the inhibiting effect of financial development structure on the consumption level of rural residents is relatively high in the five northwestern provinces.In terms of consumption structure,the scale and structure of rural financial development in Ningxia play an obvious role in optimizing the consumption structure of rural residents,which is higher than that of other provinces in Northwest China.However,the inhibition effect of per capita disposable income on the development of rural residents’ enjoyable consumption is higher than that of other provinces in Northwest China,which indicates that Ningxia should continue to increase capital investment in rural areas and stimulate the enthusiasm of rural residents in credit.So as to optimize the consumption structure of rural residents.Based on the above research conclusions,this paper puts forward policy suggestions from the following five aspects: first,expand the scale of rural financial system in Ningxia to help improve the consumption level of rural residents;Second,developing rural credit to promote the upgrading of rural residents’ consumption;Third,improve the rural financial market,tap the consumption potential of rural residents;Fourth,improve the rural social security system to stimulate the consumption vitality of rural residents;Fifth,we will improve the rural consumption environment and enhance rural residents’ confidence in consumption.