Propensity Analysis on Consumption Expenditure of Rural Residents in Hebei Province, China

Consumption expenditure of rural residents can be divided into eight types of indices, such as food consumption expenditure, clothing consumption expenditure, household equipment and service consumption expenditure, health care consumption expenditure, transportation and communication consumption expenditure, cultural and educational entertainment and service consumption expenditure, housing consumption expenditure, and other goods and services consumption expenditure. Changes in structures of rural survivable consumption (food, clothing, housing, and cultural entertainment) and rural enjoyable consumption (transportation and communication, household equipment and services, health care and other goods and services) are analyzed in order to discuss the structural change of consumption expenditure of rural residents in Hebei Province, China. It is concluded that consumption expenditure of rural residents has increased year by year in Hebei Province with the enhancement of consumption level and the slight reduction of survivable consumption which is mainly caused by the decline of food consumption. Meanwhile, there is a slow growth of enjoyable consumption, mainly reflected in the transportation and communication expenditure and other goods and services expenditure. According to the investigation data of rural residents in Hebei Province from the year 2003 to 2007, qualitative analysis on the eight indices of consumption expenditure is conducted. Principal Component Analysis is used to analyze the change of consumption structure of rural residents in Hebei Province. It can be deduced that consumption structure of rural residents in Hebei Province has changed from survivable consumption to enjoyable consumption and the consumption level of rural residents has increased constantly.