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Empirical analysis on the rural consumer behavior in China

Qian Xu

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Abstract

According to the western consumption theory,based on the rural residents' consumption and income sample data from 1978 to 2009,established econometric model,used cointegration analysis method,this article makes an empirical research on the farmers' consumer behavior.It is found that there is a long-term equilibrium relationship between the farmers' consumption and income,and the short-term consumption of farmers is susceptible to be impacted and the farmers' short-term consumption shows a little irrational.It is found that the farmers' long-term consumption multiplier and short-term consumption multiplier is still small,thus in words of the farmer's consumption effect,there is objectively a low contribution on the economic growth..AS far as the amplitude,the growth of degree,and the increase speed of development is concerned,the net income of farmers cannot be comparable with the per capita GDP.The article proposes the policy recommendations that the farmers can also live honorably.

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What this paper is about

According to the western consumption theory,based on the rural residents' consumption and income sample data from 1978 to 2009,established econometric model,used cointegration analysis method,this article makes an empirical research on the farmers' consumer behavior.It is found that there is a long-term equilibrium relationship between the farmers' consumption and income,and the short-term consumption of farmers is susceptible to be impacted and the farmers' short-term consumption shows a little irrational.It is found that the farmers' long-term consumption multiplier and short-term consumption multiplier is still small,thus in words of the farmer's consumption effect,there is objectively a low contribution on the economic growth..AS far as the amplitude,the growth of degree,and the increase speed of development is concerned,the net income of farmers cannot be comparable with the per capita GDP.The article proposes the policy recommendations that the farmers can also live honorably.

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Available abstract

According to the western consumption theory,based on the rural residents' consumption and income sample data from 1978 to 2009,established econometric model,used cointegration analysis method,this article makes an empirical research on the farmers' consumer behavior.It is found that there is a long-term equilibrium relationship between the farmers' consumption and income,and the short-term consumption of farmers is susceptible to be impacted and the farmers' short-term consumption shows a little irrational.It is found that the farmers' long-term consumption multiplier and short-term consumption multiplier is still small,thus in words of the farmer's consumption effect,there is objectively a low contribution on the economic growth..AS far as the amplitude,the growth of degree,and the increase speed of development is concerned,the net income of farmers cannot be comparable with the per capita GDP.The article proposes the policy recommendations that the farmers can also live honorably.

Key concepts: Cointegration, Consumption (sociology), Economics, Consumption function, China, Agricultural economics, Consumer spending, Empirical research

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