Correlation Analysis and Prediction Between Consumption Structure and Income of Farm Workers and Herdsman in XPCC

Residents' consumption structure is an important content of the reflection of consumer preferences,living standards and level of economic development. Income is the key factor of determining the level of residents' consumption. The author selects the panel data from 2003 to 2012 of XPCC and uses the gray correlation degree model to make an empirical analysis between the consumption structure and per capita net income of farm workers and herdsman. The result shows that food expenditure and clothing expenditure in the eight categories of consumption expenditure are the two largest items influenced by net income.Meanwhile, the forecasting analysis on grey correlation degree model is applied to predict the trends from2013 to 2016 about the level of consumption and income of farm workers and herdsman. The result shows that the living expenditure in the proportion of total consumption expenditure is more than food expenditure.Traffic and communication expenditure, cultural and educational entertainment products and equipment expenditure and health care expenditure are strongly influenced by net income, and they will become new consumption hotspots of farm workers and herdsman in XPCC.