The Impact of Rural Credit Support on Rural Resident Consumption Expenditure—Empirical analysis based on Provincial Panel Data

This paper empirically analyzes the impact of rural credit support on rural resident consumption expenditure by using provincial panel data of China during 2001—2009. The result shows that rural credit support has a positive impact on rural resident consumption expenditure growth. Specifically,in the control of a series of economic and social factors,every 1% increase of rural credit support will lead 0. 146% growth of rural resident per capita consumption expenditure. However,compared with the livelihood expenditure and the fiscal expenditure on supporting agriculture,rural credit support has less impact on rural resident consumption expenditure,which doesn't play its due role. In addition,the impact of rural credit support on rural resident consumption expenditure is different from region to region with maximal impact in central area and minimal impact in the east area. In order to promote the impact of rural credit support on rural resident consumption expenditure,credit model should be innovated,rich rural financial products should be provided,loan process should be simplified to promote rural financial efficiency,agricultural credit system should be constructed and improved based on the regional difference of economic development.