Influence Factor Analysis of Hebei Province Rural Residents' Per Capita Income and Consumption Level

Through the co-integration test of the rural residents' per capita income and consumption expenditure data of 1999-2008 of Hebei province,and the dynamic relationship between them,we found that rural residents' per capita income and consumption expenditure have a long-term equilibrium,and according to it,between a farmer income per capita and consumer spending the long-term equilibrium model is set up in this paper.Results show that income is the basic factor which decides to residents of consumer demand,and now income growth has important influences on the consumption growth.The government should formulate rational policies,establish social safety net,and change the consumption idea to fundamentally remove farmers worries,to increase farmers' income,and promotes the continuous,stable and healthy development of the rural regional economy.