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Research on Economic Effect of Grain Consumption Expenditure in Urban and Rural China

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Proceedings of 2013 World Agricultural Outlook Conference
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Abstract

[Purpose] Based on the influence of economic growth on urban and rural residents’ grain consumption, this paper aimed at measuring the grain consumption of rural and urban residents in China. [Methods] This paper adopted co-integration model, error correction model and Granger causality test to reveal the long-term dynamic equilibrium relationship and short-term dynamic relationship between the economic growth and rural or urban residents’ grain consumption expenditure, which would help convert perceptual knowledge to rational knowledge. [Conclusions] (a) Rural or urban residents’ expenditures on grain demonstrated strong correlation with the economic growth. (b) In the short term, when the short-term fluctuations deviate from the long-term equilibrium, they would return to equilibrium with the adjustments of 0.3782 and 0.7652 respectively. (c) Economic growth is the cause of increases of rural and urban residents’ expenditures on grain, while the increases of rural or urban expenditures on grain are not the cause of economic growth.

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Acknowledgements

The authors gratefully acknowledge the financial support from the Key Technologies R&D Program of China during the 12th Five-Year Plan Period (2012BAH20B04).

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Correspondence to Yu Wang .

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Wang, Y., Wu, J., Zhao, X. (2014). Research on Economic Effect of Grain Consumption Expenditure in Urban and Rural China. In: Xu, S. (eds) Proceedings of 2013 World Agricultural Outlook Conference. Springer, Berlin, Heidelberg. https://doi.org/10.1007/978-3-642-54389-0_20

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  • DOI: https://doi.org/10.1007/978-3-642-54389-0_20

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  • Publisher Name: Springer, Berlin, Heidelberg

  • Print ISBN: 978-3-642-54388-3

  • Online ISBN: 978-3-642-54389-0

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