HUBEI AGRICULTURAL SCIENCES ›› 2023, Vol. 62 ›› Issue (9): 209-213.doi: 10.14088/j.cnki.issn0439-8114.2023.09.036

• Economy & Management • Previous Articles     Next Articles

Analysis of consumption structure of rural residents in Shaanxi Province based on the ELES model

WANG Yi   

  1. School of Economics and Management, Ankang University, Ankang 725000, Shaanxi, China
  • Received:2023-05-24 Online:2023-09-25 Published:2023-10-24

Abstract: The relationship between per capita consumption expenditure of eight consumption items and per capita disposable income among rural residents in Shaanxi Province from 2012 to 2021 was explored. The Extended Linear Expenditure System (ELES) model was used to analyze the marginal consumption propensity, demand income elasticity, and demand price elasticity of rural residents in Shaanxi Province. The results showed that there was a significant positive correlation between the expenditure on the eight consumption items and disposable income, indicating a huge development potential for the rural consumption market in Shaanxi Province and more possibilities for local economic development. After years of development, the consumption structure of rural residents had changed significantly. Food and housing consumption were still the focus of rural residents’ consumption, but their proportion had been declining year by year, and emerging consumption patterns continued to promote the optimization and upgrading of consumption structure. The transportation and communication consumption and medical and healthcare consumption had huge consumption potential among rural residents in Shaanxi Province. Their marginal consumption propensity and demand income elasticity also confirmed these two expenditures as consumption hotspots. Finally, relevant strategies and suggestions were proposed to optimize the consumption structure of rural residents in Shaanxi Province from aspects of improving rural residents’ disposable income, strengthening the rural social security system, and improving rural infrastructure construction.

Key words: rural residents, consumption structure, ELES model, Shaanxi Province

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