Abstract
Household consumption is closely related to economic growth. Based on a modified Cobb-Douglas production function, adopting the data of household consumption and economic growth in Hubei Province from 1980 to 2010, this paper establishes the evaluation model and takes ADF unit root test approach, Johansen co-integration test approach and Granger causality test approach to make an empirical analysis on the impacts of household consumption on economic growth in Hubei Province. The results show that there is a stable relationship between household consumption and economic growth in the long run. The relationship between them presents positive correlation. Economic growth in Hubei Province is the Granger cause of household consumption. However, the role of household consumption on economic growth is not obvious. Therefore, Hubei government must fully exploit the potential of household consumption in order to promote sound and rapid economic development.
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Acknowledgments
Author Xi-xiang Sun, Ling-li Deng thank the statistics experts who has collected the data of household consumption and GDP in Hubei Province. It provides a first-hand data for the empirical analysis.
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Sun, Xx., Deng, Ll. (2013). An Empirical Analysis on the Influence of Household Consumption on Economic Growth in Hubei Province. In: Qi, E., Shen, J., Dou, R. (eds) The 19th International Conference on Industrial Engineering and Engineering Management. Springer, Berlin, Heidelberg. https://doi.org/10.1007/978-3-642-38427-1_6
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DOI: https://doi.org/10.1007/978-3-642-38427-1_6
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