The impact of consumption on economic growth in Chongqing based on the decomposition of input output table

Abstract

This paper investigates the effects of Chongqing’s rural and urban residents and total resident population on economic development based on the residents’ consumption structure and analyses of economic development theories concerned by using the input-output table of Chongqing during 2002–2017 and SDA (Structure Decomposition Analysis) model. The study found that, compared with the previous years, the direct consumption of the primary industry’s unit output to the industrial products has decreased significantly in 2017, while the direct consumption to the tertiary industry has increased significantly; The direct consumption per unit output of the second industry is basically equal to that of the products of the industry, while the direct consumption of the products of the third industry has increased; The direct consumption per unit output value of the tertiary industry is basically equal to that of the primary industry. In the long run, the changes in consumption structure of rural and urban residents and total resident population and the increase in proportion of tertiary industry accelerate the transformation and upgrading of industrial structure. However, the effect of consumption structure on GDP (Gross Domestic Product) varies from year to year. On the whole, the changes of residents’ consumption have a positive effect on GDP (Gross Domestic Product).