On the Consumption Gap Index of Chinese Urban and Rural Residents and Countermeasures

Consumer demand is one of the three troikas in driving economic growth.However,China's domestic demand is now in serious shortage,and the gap of consumption level between urban and rural residents is continually widening.How to narrow the consumption gap between urban and rural residents and promote the healthy development of the overall national economy has become the focus of people's attention.This paper uses independent samples t-test and multiple regression analysis methods of statistical analysis on China's consumption of urban and rural residents since 1990 and indicates that the underlying reasons of consumption gap between urban and rural residents is due to the urban-rural differences in labor productivity and industrial structure.Finally the paper proposes countermeasures and suggestions to construct support system for urban and rural industrial development.