An Empirical Study on Factors of Consumption Expenditure in Taiwan

• Main Authors: Shu-Fen Cheng, 鄭淑芬
• Other Authors: 柯伯昇
• Format: Others
• Language: zh-TW
• Published: 2016
• Online Access: http://ndltd.ncl.edu.tw/handle/63622113044215065928

碩士 === 國立高雄應用科技大學 === 財富與稅務管理系碩士在職專班 === 104 === Economic growth is an important index of a country's health. From 1981 to 2015, the average contributing ratio of Private Consumption to economic growth is between 50% and 57%. It is obvious that Private Consumption helps to maintain constant economic growth. Taiwan is an export-oriented country. Its economy is easily impacted by international environment. While in this time of international economic depression, the government can boost Private Consumption to stabilize domestic economic development by stimulating domestic demand. Among the many factors that influence Private Consumption, this study focused on seven independent variables, including Gross Domestic Product, Disposable Income, GINI index, Consumer Price Index, Average Weighted Interest Rate, Raising Ratio, and Aging Index. These data are annual from 1981 to 2014 for the empirical analysis by multiple regression. The empirical results show that GDP, DI, GINI index, and CPI have significantly positive influence on PC; Average Weighted Interest Rate has negative influence on PC, but not significantly; Raising Ratio and Aging Index have positive influence on PC. These show that economic growth and prosperity can increase job opportunities and national income would increase. When Disposable Income grows, consumers will thus increase Consumption Expenditure. Theoretically, the lower its GINI index , the more nearly equal a country's income distribution, the more consumer spending. But it becomes positively correlated because the middle and high income households will propably increase Consumption Expenditure for more delicate quality of life. While prices rise but the nominal income remains constant, consumers will increase expenditures to maintain their basic standard of living.