Abstract:
With the development of economy, the consumption has become the greatest driving force for economic growth. The effect of household consumption on the economic development and social stability in a region has been more and more obvious. By using the co-integration theory, the relationship between per capital consumption expenditure and per capital disposable income of urban residents in Fujian was empirically analyzed. Then, the error correction model was established based on the co-integration analysis. Last, the corresponding countermeasures were put forward according to the empirical analysis result.