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An empirical study on the impact of income sources of urban residents on consumption in China
- 1 Ningbo University
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Abstract
This study aims to investigate the influence of different income sources on consumption expenditures, specifically focusing On Foods, Alcohol, Tobacco expenditures (Subsequent abbreviated as FATE), and Apparel expenditures (Subsequent abbreviated as ARE). Utilizing a dataset from the National Bureau of Statistics of China, we employ multiple linear regression models to analyze the relationship between various income streams: income from salary (IFS), net income from business (NIB), net income from property (NIP), and net income from transfer (NIT), and two key expenditure categories: FAT and ARE. Key findings indicate that IFS has a positive correlation with FATE, suggesting that an increase in IFS is likely to result in higher consumption in these areas. In contrast, NIB, NIP, NIT show a negative correlation with these expenditures, implying a potential trade-off or substitution effect. For ARE, the relationship with IFS is less pronounced, and the influence of other income sources requires further investigation. The results provide valuable insights for policymakers and businesses in understanding consumer behavior and formulating strategies to stimulate consumption in specific sectors. The implications of this study are twofold: first, by identifying the income sources that significantly affect consumption, policymakers can target these areas to promote economic growth; second, businesses can better tailor their marketing strategies to align with consumer spending patterns.
Keywords
income sources, consumption patterns, empirical analysis, food and foods, alcohol, tobacco expenditures, apparel expenditures
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Cite this article
Zhou,P. (2024). An empirical study on the impact of income sources of urban residents on consumption in China. Advances in Operation Research and Production Management,2,28-35.
Data availability
The datasets used and/or analyzed during the current study will be available from the authors upon reasonable request.
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