An Empirical Research of the Relationship between the Consumption Expenditure and Income of Rural Residents of Henan Province

The effect of income changes on the consumption expenditure and the affecting degree are different in different areas of China.In order to find out the degree of the effect of income on the consumption expenditure of the rural residents of Henan province,based on the basic data of the consumption expenditure and income of the rural residents of Henan province during 1989-2008,the author uses the method of linear regression analysis and finds out the number relationship and basic regular pattern between consumption and income.The empirical results show that the rural residents have a stronger consumption desire,but insufficient income restricts their consumption.Based on the analysis,the author puts forward some suggestions on improving the income of rural residents and accelerating their consumption.