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Household Consumption in China on the rise: Can China buy growth?

Riley, Sharon LU (2011) EKHR11 20111
Department of Economic History
Abstract (Swedish)
This paper seeks to examine trends in Chinese household consumption. It is comprised of a two-fold study, which undertakes both an exploratory and an explanatory approach. First, an analysis into the nature of household consumption examines trends in purchasing habits. Specifically, data on the consumption and prevalence of durable household goods and major food commodities is gathered to establish both the yearly demand for such products, as well as to establish whether demand in the consumer market is met by domestic production. Second, an explanatory analysis of household consumption attempts to glean more insight into which factors may potentially induce increases in Chinese household consumption.

This study is undertaken in... (More)
This paper seeks to examine trends in Chinese household consumption. It is comprised of a two-fold study, which undertakes both an exploratory and an explanatory approach. First, an analysis into the nature of household consumption examines trends in purchasing habits. Specifically, data on the consumption and prevalence of durable household goods and major food commodities is gathered to establish both the yearly demand for such products, as well as to establish whether demand in the consumer market is met by domestic production. Second, an explanatory analysis of household consumption attempts to glean more insight into which factors may potentially induce increases in Chinese household consumption.

This study is undertaken in response to the suggestion that the current leadership of China has undertaken a fundamental shift in government policy which seeks to promote consumption-driven rather than export-led growth as a means to sustained transformation and long term economic growth.

The results suggest, coinciding with past studies, that government expenditure on social programs (welfare, pensions, etc) has a significant impact on household consumption, supporting theories of precautionary savings and their implicit effects on consumption levels. (Less)
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author
Riley, Sharon LU
supervisor
organization
course
EKHR11 20111
year
type
H1 - Master's Degree (One Year)
subject
keywords
China, household consumption, economic growth, domestic market, precautionary saving
language
English
id
2057577
date added to LUP
2011-08-09 11:30:43
date last changed
2011-08-09 11:30:43
@misc{2057577,
  abstract     = {This paper seeks to examine trends in Chinese household consumption. It is comprised of a two-fold study, which undertakes both an exploratory and an explanatory approach. First, an analysis into the nature of household consumption examines trends in purchasing habits. Specifically, data on the consumption and prevalence of durable household goods and major food commodities is gathered to establish both the yearly demand for such products, as well as to establish whether demand in the consumer market is met by domestic production. Second, an explanatory analysis of household consumption attempts to glean more insight into which factors may potentially induce increases in Chinese household consumption.

This study is undertaken in response to the suggestion that the current leadership of China has undertaken a fundamental shift in government policy which seeks to promote consumption-driven rather than export-led growth as a means to sustained transformation and long term economic growth.

The results suggest, coinciding with past studies, that government expenditure on social programs (welfare, pensions, etc) has a significant impact on household consumption, supporting theories of precautionary savings and their implicit effects on consumption levels.},
  author       = {Riley, Sharon},
  keyword      = {China,household consumption,economic growth,domestic market,precautionary saving},
  language     = {eng},
  note         = {Student Paper},
  title        = {Household Consumption in China on the rise: Can China buy growth?},
  year         = {2011},
}