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| THE CONSUMER BEHAVIOR PATTERNS AND REGULATIVE STRATEGIES OF CHINESE RESIDENTS IN THE ECONOMIC TRANSITION PERIOD |
| ZHANG Jin-mei |
| School of Economics and Finance, Xi'an Jiaotong University, Xi'an 710061, China |
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Abstract The steady economic growth has uplifted the living standards of the Chinese people, thus reshaping a stereotyped pattern of consumption. However, subject to the indeterminacy of future income and expenditure, inadequate consumer demand has arisen in China and posed a serious constraint to the country's economic development. Over the years, the issue of how to increase consumer demand and achieve a sustainable economic growth effectively has been one of the great concerns for the economic academia of China. Based on the existing theoretical and empirical research findings, such as Random Walk Hypothesis, Excess Sensitivity, Absolute Income Hypothesis, Precautionary Saving Theory, Relative Income Hypothesis, Buffer-Stock Saving Theory, and Liquidity Constraint Theory, this paper takes a multidimensional positive approach to the study of the consumer behavior patterns outstanding in China's transition from the command to market economy, characterized by a relatively low rate of consumption, a higher level of consumer needs and a tendency towards internationalization. The paper ends by proposing a number of regulative strategies that are supposed to produce facilitating effects on future consumer behavior in the Chinese context. These strategies are intended to increase employment and income, narrow down the gap of income, stimulate effective consumer demand, create a safe, congenial climate of consumption, accelerate the legislation process of credit, and expand consumption on credit. Building such a healthy environment of consumption is regarded as highly conducive to the realization of human survival needs, the improvement of the living texture of the people, faster economic development and overall social progress.
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Received: 20 October 2004
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2005, Vol. 20 
