A Comprehensive Evaluation of Chinese Residents' Consumption Potential from 2010-2021 | Chapter 36 | Theoretical Key Issues and Practical Development Trends of China’s Digital Economy

Household consumption holds significant importance within a nation's economy as one of its foremost constituents and serves as both a fundamental impetus for economic advancement and an ultimate objective. As China's socialist market economy continues to progress alongside improvements in living standards, there has been an expansion in Chinese residents' expenditure with enhancements made to its structure and quality while contributing increasingly towards economic growth annually. Consequently, household spending plays a pivotal role in our national economy. To foster sound progression in household spending necessitates implementing various measures such as elevating resident incomes, enhancing consumer environments, and bolstering market oversight amongst others; concurrently emphasizing comprehensive evaluations regarding resident spending potential will offer valuable insights for further enhancement.

 

Author (s) Details

 

Wenbo Lyu
Saxo Fintech Business School, University of Sanya, Sanya, 572000, China.

 

Haowen Chen
Saxo Fintech Business School, University of Sanya, Sanya, 572000, China.

Yan Jiang
Saxo Fintech Business School, University of Sanya, Sanya, 572000, China.

 

Jinsun Feng
Saxo Fintech Business School, University of Sanya, Sanya, 572000, China.

 

Tandang Huang
Saxo Fintech Business School, University of Sanya, Sanya, 572000, China.

 

Please see the book here:- https://doi.org/10.9734/bpi/mono/978-93-48388-89-6/CH36

Comprehensive Assessment of Consumption Potential | Chapter 35 | Theoretical Key Issues and Practical Development Trends of China’s Digital Economy

This study offers a comprehensive evaluation of the consumption potential among Chinese residents, focusing on elucidating consumer demand, behavior, and trends to forecast future market developments. Conducted by Wenbo Lyu, Yingying Duan, Yudie Yang, Jia Liu, and Jiayi Zhu from the Saxo Fintech Business School at the University of Sanya, this research is part of a specialized training initiative (SYJPZQ2024045) aimed at enhancing income mechanisms.

The investigation employs multiple methodologies—including Grey Relational Analysis, Entropy Methodology, and Regression Analysis—to assess consumption potential across three primary dimensions: consumer base, consumption capacity, and consumption environment. Key findings indicate that consumption capacity—particularly national total income—emerges as the most significant determinant influencing consumer potential.

Specifically, the analysis reveals that national total income exerts the greatest influence within the domain of consumption capacity; thus positioning it as a principal driver of consumer expenditure. Utilizing the Grey prediction model GM(1,1), forecasts for consumption potential over the next seven years are generated with an average relative error of 1.25%, indicating a high degree of fit. Projected consumption expenditures for these periods are anticipated to rise steadily from 668,567.996 to 984,043.249.

This study delineates both advantages and limitations inherent in its evaluation model for assessing consumption potential. While it provides an objective and scientific foundation for decision-making through consideration of multiple factors, the accuracy and stability in predictions remain contingent upon data quality and scope of application. Consequently, the model's forecasts may diverge from actual conditions across different regions, industries, and demographic segments.

 

Author (s) Details

 

Wenbo Lyu
Saxo Fintech Business School, University of Sanya, Sanya, 572000, China.

 

Lisa Ni
Saxo Fintech Business School, University of Sanya, Sanya, 572000, China.

 

Yingying Duan
Saxo Fintech Business School, University of Sanya, Sanya, 572000, China.

 

Yudie Yang
Saxo Fintech Business School, University of Sanya, Sanya, 572000, China.

Jia Liu
Saxo Fintech Business School, University of Sanya, Sanya, 572000, China.

 

Please see the book here:- https://doi.org/10.9734/bpi/mono/978-93-48388-89-6/CH35