Empirical Analyses on the Effects of Public Product Supply on the Consumption of Rural Residents in China-On the Basis of Rural Panel Data

Using panel data models established by use of 2005 to 2009 data of rural public goods and consumption expenditure of Chinese rural residents,we performed empirical analyses on the effects of rural public goods including transport facilities,communication facilities,electricity infrastructure,medical and health infrastructure and education facilities on consumption structure of Chinese rural residents. The empirical results showed that rural consumption was significantly promoted if there was an improvement of transport facilities,communication facilities,electricity infrastructure,medical and health infrastructure or education facilities. Among these factors,the electricity infrastructure had the biggest effect,followed by the communications infrastructure,especially mobile communication facilities. Furthermore,according to our results,we gave suggestions about policies involving how to increase consumption of rural residents.