Open Access Open Access  Restricted Access Subscription or Fee Access

An empirical study of the relations between China’s social security expenditure and consumption level

Zhao Jianguo, Li Jia


Combined with the characteristics of China’s urban and rural dual economic structure, this paper analyzes the relationship between social security expenditure and consumption level in depth through improving consumer optimal model, and attaches importance to the influence of the income index. The author tests the relationship between social security expenditure and consumption empirically by using co-integration theory and other methods on the basis of optimal theory model in which the income index was added. Then it draws the conclusion that social security spending has significantly contributed to the consumption lifting in both urban and rural areas in a long-term. Especially, the rural social security expenditure has a greater marginal effect on consumption. These conclusions provide a realistic theoretical basis for China to improve social security system and raise the level of consumption of rural residents.


Social security expenditure, consumption level, optimal theory of consumer.

Full Text:



  • There are currently no refbacks.

Disclaimer/Regarding indexing issue:

We have provided the online access of all issues and papers to the indexing agencies (as given on journal web site). It’s depend on indexing agencies when, how and what manner they can index or not. Hence, we like to inform that on the basis of earlier indexing, we can’t predict the today or future indexing policy of third party (i.e. indexing agencies) as they have right to discontinue any journal at any time without prior information to the journal. So, please neither sends any question nor expects any answer from us on the behalf of third party i.e. indexing agencies.Hence, we will not issue any certificate or letter for indexing issue. Our role is just to provide the online access to them. So we do properly this and one can visit indexing agencies website to get the authentic information.