Consumption Structure and Net per Capita Income: The Case of Rural Households in Hebei Province China

This study is conducted to examine the per capita consumption and per capita net income of the rural households using statistical data of Hebei province China for the period 2000-2014.The descriptive statistical analysis, correlation test, Extend Linear Expenditure System (ELES) model, Gray relational analysis and the residual test have been used in this study.The results of the study indicates that all the rural households consumption have the increasing trend except the Engel coefficient shows the declining trend from 39.508% to 29.355%.The study of regression analysis, MPC (marginal propensity to consume) and APC (Average propensity to consume) clearly shows that in the study area with the rise of rural households income, their consumption demand also increases. The relative co relational analysis shows, that the food consumption ranks first, household consumption has second, clothing consumption third, family equipment consumption fourth have highest close relation with the per capita income of rural households. Lastly the healthcare, transport communication, education and other consumptions have a relatively lower correlation with the rural households’ per capita income. The prediction accuracy grade is good for all per capita income and rural households’ consumption except the educational consumption grade that is just qualified. Finally we can forecast the future development trend of rural households’ consumption structure and income level. By means of the positive analysis, the countermeasures and recommendations have been proposed to developthe rural economy and consumer market in Hebei Province.