Disposable income and actual sports consumption expenditures correlation research based on co-integration theory and error correction model

Honglan Jin

Abstract

According to China consumption expenditures, nominal GDP, government total revenue, consumer price index time series data in 1978 to 2012, then make use of these four variables calculating disposable income (Dinc) and actual sports consumption expenditures (ACS) two variables, after that utilize co-integration theory and error correction model as well as other econometrics methods to analyze relationships between Dinc and ACS. Research results show that China disposable income and actual sports consumption expenditures exists co-integration relationships; and during 10% significance levels, actual disposable income is the Granger cause of actual sports consumption expenditures, on the contrary actual sports consumption expenditures is not the Granger cause of disposable income.