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Research on Rural Consumer Demand in Hebei Province Based on Principal Component Analysis

Listed author(s):
  • Ma, Hui-zi
  • Zhao, Bang-hong
  • Xuan, Yong-sheng
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    By selecting me time sequence data concerning influencing factors of rural consumer demand in Hebei Province from 2000 to 2010, this paper uses the principal component analysis method in multiplex econometric statistical analysis, constructs the principal component of consumer demand in Hebei Province, conducts regression on the dependent variable of consumer spending per capita in Hebei Province and the principal component of consumer demand so as to get principal component regression, and then conducts quantitative and qualitative analysis on the principal component. The results show that total output value per capita (yuan), employment rate, and income gap, are correlative with rural residents' consumer demand in Hebei Province positively; consumer price index, upbringing ratio of children, and one-year interest rate are correlative with rural residents' consumer demand in Hebei Province negatively; the ratio of supporting the elderly and medical care spending per capita are correlative with rural residents' consumer demand in Hebei Province positively. The corresponding countermeasures and suggestions are put forward to promote residents consumer demand in Hebei Province as follows: develop county economy in Hebei Province and increase rural residents' consumer demand; use industry to support agriculture and coordinate urban-rural development; improve rural medical care and health system and resolve actual difficulties of the masses.

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    Article provided by USA-China Science and Culture Media Corporation in its journal Asian Agricultural Research.

    Volume (Year): 03 (2011)
    Issue (Month): 05 (May)

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    Handle: RePEc:ags:asagre:117256
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