Comparative Analysis of Urban-rural Residents' Propensity to Consume in China's Four Regions

According to the data in China Statistical Yearbook from 1992 to 2008, by using regression model, we adopt least square method and generalized least square method to conduct empirical analysis on me relationship between urban-rural residents' income and consumption in China's east, northeast, central region and west. The results show that the urban-rural residents' propensity to consume in China's four regions has prominent characteristics. In terms of region, urban residents' marginal propensity to consume takes on irregular fluctuation, while the rural residents' propensity to consume conforms to law of diminishing of marginal propensity to consume; in terms of time sequence, the rural residents' marginal propensity to consume in China's four regions takes on ' multi-U-form fluctuation trend, and the rural residents' marginal propensity to consume in different regions has certain difference, while the urban residents' marginal propensity to consume takes on low-frequency broad width fluctuation trend; the urban-rural residents' average marginal propensity to consume in China's four regions conforms to the law of diminishing. In order to increase consumption and promote the balanced rapid development of regional economy, in light of the urban-rural difference and characteristics of different regions, we should propound effective measures to promote urban-rural residents' propensity to consume, and formulate and implement regional policy in order to stimulate consumption.