Author(s)

Ming Jin, Mengqi Liu

Corresponding Author

Ming Jin

ABSTRACT

In recent years, with the development of economy and the improvement of people's living standard, the per capita consumption expenditure in China has been increasing, especially the consumption expenditure of urban residents. The per capita consumption expenditure of urban residents is the main factor of social consumption demand and the direct factor of stimulating economic growth. It is an important index reflecting the living standard and quality of residents. The focus of residents' consumption gradually grows from being full too warm to paying attention to spiritual and healthy enjoyment. Although the total income of residents has increased rapidly, consumption expenditure has been increasing slowly. The imbalance of "high investment, high export and low consumption" of the national economic structure is very obvious. The main consumption demand is embodied in the survival consumption such as food, medical treatment and residence. With the different level of urban development, per capita consumption also presents regional characteristics. This paper uses factor analysis and cluster analysis to analyze the per capita consumption expenditure of urban residents in 31 provinces and cities in China. By factor analysis, the top 5 cities are Shanghai Beijing, Guangdong, Zhejiang and Fujian. Through cluster analysis, it is concluded that the per capita consumption expenditure level of urban residents in 31 provincial capitals is unbalanced. Finally, suggestions are made according to the results of the model analysis.

KEYWORDS

Factor Analysis, Cluster Analysis, Per Capita Consumption Expenditure