Income Distribution,Residents Consumption and Change of the Economic Development Mode

In the last 30 years,China's economy has the sustained rapid growth.However,in the growth process showing a widening income gap and weak consumer demand.In this paper,we build models to test the relationship between income distribution,residents consumption and economic growth.The results of the study show that:Although the income gap has the insignificant impact on rural household consumption,but urban residents income gap have a negative impact on its consumption,the income gap has significantly restricted the growth of consumer demand in China.Residents consumption has the insignificant impact on economic growth,In terms of the effects on economic growth consumer demand is stronger investment,so to expand the consumer conducive economic sustainable development.Finally,this paper puts forward specific policy recommendations.