The Transform of Economic Growth Mode - From ´Investment-leading´ to `Consumption-leading´

Viewing from three aspects of the objective factors, the policy influence and the dual economic structure, this paper begins with analyzing the changing process of the structure of domestic demand in China from the year 1999 to 2004. What the analysis concludes explains that the growth mode of `investment-leading´ is non-sustainable. And it´s concluded that the total demand has the problem of structural adjustment. Namely, it´s necessary to expand the consumption demand, especially of the rural households. The three advantages of the growth mode of `consumption-leading´ determine that it´s imperative to realize the transform of from `investment-leading´ to `consumption-leading´ so as to make sure that the national economy develops in a sustained, rapid and sound way. Finally, in order to realize the transform, this paper brings forward five policy suggestions: improving the system of income distribution, expanding employment, the innovation of supply, keeping the expectation stable and increasing the credit for the consumption