TITLE:
Data Analysis of Consumption Upgrading of Urban Residents in China
AUTHORS:
Xiaoyu Wang
KEYWORDS:
Consumption Upgrade, Time-Series Global Principal Component Analysis, ELES Model, Supply Side Reform
JOURNAL NAME:
Open Journal of Social Sciences,
Vol.7 No.10,
October
9,
2019
ABSTRACT: In the process of deepening the supply-side reform, China’s economic operation
has shown a good momentum of steady development, and consumption has begun to
play a prominent role in promoting economic growth. However, there are still
many different opinions on whether it is “consumption upgrade” or “consumption
downgrade”. Based on the eight types of consumption data of urban residents in
China from 1993 to 2016, this paper uses the time-series global principal
component analysis method and the ELES model to empirically analyze the
longitudinal time series data from the three levels of consumption level,
consumption structure and consumer satisfaction. The results show that the
consumption level of urban residents is increasing steadily, the consumption
structure is continuously optimized, and consumer satisfaction is significantly
improved. At this stage, China is indeed in a period of consumption upgrading,
rather than the consumption reduction proposed by the private sector. Therefore,
under the background of supply-side structural
reform, measures such as improving the income distribution system, improving
the quality of labor supply, and developing scientific and medical equipment
are the fundamental ways to accelerate the upgrading of China’s consumption.