ABSTRACT
Since the reform and opening up, China made great achievements in economic
development, however, in the global financial crisis environment, our economy has
entered a slow period of development, and continuing to rely on investment and exports
for economic growth in China has appeared to be inadequate. Consumption in the
national economy has become the key factor to maintain macroeconomic stability and
sustained growth, so to study the role of consumer demand in economic development
has practical significance.
From the theoretical point of view, this article describes the roles and shortcomings
of consumer demand, investment demand and net exports to economic growth, and
analyzes the consumer demand for economic growth. Factors affecting economic
growth include long-term factors and short-term factors. Long-term factors include
factors’ supply and total factor productivity; short-term factors include investment,
consumption and net exports. In the short-term factors affecting economic growth,
consumer demand is an important force driving economic growth, and demand, as an
important component, plays a decisive role in the steady and virtuous cycle of
economic growth.
This article bases on 1978 -2008 consumer demand data, using the consumption
rate, contribution rate and co-integration analysis method, analyzes the influence of
consumer demand and government consumption demand and consumption demand of
urban and consumption demand of rural consumer demand on economic growth.
The analysis shows that the growth of rural incomes is slow, the gap between
income is growing, social security reform enhances the expectation of the uncertainty of
future expenditure and the slow development of consumer credit constraints liquidity.
To address the above problems, this paper gives some suggestions.
Key Word: Consumer demand, Economic growth, Relationship