Empirical Analysis on the Impact of Three Kinds of Income Gaps on Consumption

Stimulating consumption has become the key to China's economic growth.In this paper,we analyze the impact of urban-rural,industrial and regional income gap on the consumption by using the actual data from the reform and opening up in China,and draw the conclusion that these three kinds of income gaps have become the primary factors in expanding the consumption demand,which account for about 67 percent.Meanwhile,the slow growth of residents' income is also an important factor that often be ignored.On this basis,we make some suggestions to stimulate the consumption demand.