Empirical Analysis of the Relation between Consumption and Economy Growth in Anhui Province
Shi Hai-b
Abstract
Shi Hai-b
Abstract
In this paper,through the examination of the relation among the consumption of Anhui provincial government, rural residents,urban residents and the economic growth from 1995to 2011,the result suggests that economic growth is the Granger cause of rural residents,urban residents and government consumption,but the consumption of urban residents,rural residents and government consumption is not the cause of economic growth.And by using VAR model analysis,it can be found that the consumption of urban residents plays the most important role in economic growth;the consumption of rural residents has negative impulse on the consumption of urban residents,government consumption and economic growth;Government consumption has positive impulse on the consumption of rural residents and economic growth,but the effect is unobvious.
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In this paper,through the examination of the relation among the consumption of Anhui provincial government, rural residents,urban residents and the economic growth from 1995to 2011,the result suggests that economic growth is the Granger cause of rural residents,urban residents and government consumption,but the consumption of urban residents,rural residents and government consumption is not the cause of economic growth.And by using VAR model analysis,it can be found that the consumption of urban residents plays the most important role in economic growth;the consumption of rural residents has negative impulse on the consumption of urban residents,government consumption and economic growth;Government consumption has positive impulse on the consumption of rural residents and economic growth,but the effect is unobvious.
Key concepts: Consumption (sociology), Government (linguistics), Economics, Empirical research, Consumer spending, Rural area, Economic growth, Agricultural economics