Empirical Analysis on the Relations between Rural Residents' Consumption and Economic Growth - A Case of Liaoning Province

Abstract

Liaoning is a granary province with a large agricultural population and great market potential. Expanding rural residents’ consumption becomes a necessity for enlarging domestic demand, solving three agriculture problems and promoting sustainable and rapid economic development. The research shows that since invigorating old industrial base in Liaoning, the contribution rate of rural residents’ consumption to economic motivation is low and unstable, which has become one of the choke points for the development of economy. By using the grey correlation method, the influences of rural residents’ consumption in different periods to GDP per capita are analyzed, the results show that the consumption level of rural residents were increasing, but their contribution rate on economic growth showed the descending tend. The residential expenses stay in the major position of consumption expenses; the education and entertainment products and service consumption play an important role; the growth of transportation and telecommunication is slow; the expenses on medical care are low and its contribution rate on economic growth is relatively weak. The countermeasures on developing rural economy, increasing rural residents’ income, improving rural consumption environment, accelerating rural infrastructure construction, constructing and perfecting rural social security system and expanding rural consumption credit market are put forward to expand rural residents’ consumption demand and realize the sustainable development of economy.