Dynamic Analysis of Interaction between Rural Residents' Consumption and Income

In recent years, the income and consumption level of farmers is lower than that of urban residents, and in the context of current grave international economic environment, it is very unfavorable to expanding domestic demand and stimulating economic growth. Based on the empirical analysis of rural residents' income and consumption, this paper explores the reasons for lagging consumption of rural residents in China, and finally puts forth the recommendations for increasing farmers' income, promoting farmers' consumption and expanding the rural market.