Study of Co-integration Relationship of Jiangxi Rural Consumption and Economic Growth

In this paper, we take 1990-2011 statistical data of Jiangxi Province as a sample, with co-integration test and Granger causality test model, through Eviews6.0 software, make an empirical analysis on the relationship between consumption and economic growth in rural of Jiangxi province. The results show that the consumption level of rural residents in Jiangxi and economic growth is a first-order co-integration, and there is a long-term dynamic equilibrium relationship between the two. Meanwhile, consumption and economic growth in rural Jiangxi has mutual causal relationship, as economic growth promotes the consumption level of rural residents, and rural resident consumption level also plays an important role in economic growth.