Abstract

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Title:: Research on relevance of residents consumption and innovation ability

Author(s):: YANG Hai-rui; ZHU Yun-juan; ZENG Qiong-qiong; School of Business, Anhui University

Keywords:: urban residents consumption; rural residents consumption; innovation ability; domestic demand

Abstract:: Based on the sample data from 1986 to 2012, the paper researches the relevance of residents consumption and innovative ability from two aspects: total amount and structure. Through the data unit root test, co-integration analysis and Granger causality test, it shows that: residents consumption and innovation ability shows a certain relevance: improving innovation ability has a significant positive effect on promoting residents consumption, while the effect of residents consumption on the promotion of innovation ability is not so obvious; the effect of consumption on the promotion of innovation ability of the urban residents is more significant than that of rural residents; as for the Granger reason for the original ability of residents consumption structure, these two show a longrun relationship of disequilibrium. Therefore, the positive role of innovation ability on promoting residents consumption and stimulating domestic demand should be fully played, and form an effective transmission mechanism, which can makes residents consumption become an important driving force for promoting innovation ability.