The Impact Analysis of Residents' Income Level on Total Volume of Retail Sales

Based on the theory of economic relationship between urban resident per capita disposable income and total retail sales per capita, the empirical data analysis for 19782013 showed that the increase of per capita disposable income of urban households will reduce the per capita total retail sales of social commodities. However the rural situation is just the opposite. This difference is mainly caused by the factors: The two variety of residents' consumption concept have significant differences. Module analysis also found that urban and rural residents per capita income of short term both have macroeconomic conduction lag. Finally detailed proposals for the sustainable and healthy development of our country's economy are put forward.