Gray Correlation Degree Analysis of Factors Affecting the Consumption of Farmers

Consumption status of rural China is briefly described. Basic ideas and analysis steps of Gray Correlation Degree Analysis are introduced. Based on the gray correlation degree between farmers’ consumption and 8 items of basic living consumption expenditures, both macroscopic and microscopic factors affecting the consumption of rural residents are obtained. According to relevant statistical data, Gray Correlation Degree Analysis is used to study on the gray correlation degree between the farmers’ consumption and the macroscopic and microscopic factors in eastern, central and western regions and the whole China from the angle of time and cross-section sequences. Result shows that farmers’ consumption has gradually changed from basic needs to the needs of improving living conditions and life quality. Agricultural information development, rural infrastructure construction, social security, and other macroeconomic factors are the main reason affecting the consumption level of peasants. And health care, household equipment，and cultural and educational entertainment products are the major consumption for farmers in future. Based on this, relevant countermeasures are put forward, such as increasing personal disposable income of rural residents, improving the infrastructure construction in rural areas, and establishing a perfect social security system and an unimpeded information system.