A Research on Consumption Expenditure of Rural Residents in China——Based on Principal Component Analysis

Using the year of 2011 data of rural residents' consumption expenditure of 31 provinces, municipalities and autonomous regions in China and the method of principal component analysis, the paper founds the dominant component of rural residents' consumption expenditure. According to the dominant factor, 31 regions have been sorted and clustered. The results show that consumption expenditure of rural residents changes significantly in different regions. A few areas of rural residents' consumption expenditure is limited to survival needs, while the majority of rural residents have been met, the consumption structure is in the stage of transformation and upgrading. According to the features of rural residents' consumption expenditure, the paper puts forward the corresponding strategies.