Influencing Factors of Resident's Consumption Level:An Empirical Study

With the policy of opening-up to the outside world and reform,China has seen rapid economic growth in the past 30 years,but the share of consumption in GDP is decreasing.The contribution of consumption to economic growth can be realized by changing the current economic development pattern which relies more on foreign trade rather than on domestic needs.Based on 1993-2012 data of Jiangsu Province,this paper makes a macro analysis of the impact of residents' income increase on consumption.The analysis indicates that personal income increase exerts a long-term rather than a short-term positive effect on consumption,and that the contribution of rural residents' consumption if stimulated to economic growth would be much greater that that of urban residents' consumption.