explain the relationship of consumption to economic development?

Answer 1

As consumption increases, production rises to meet demand, and the economy makes more money which makes the economy develop.

So there is a direct relationship between consumption and development.

Answer 2

G= f(C)
where G= ECONOMIC GROWTH AND C = household consumption. Meaning that as consumption goes up following to increase in spending on durable and non durable goods ,economy move up. The equation presented above one can be tested empirically using econometric techniques . Benchmark starts from Log G = X + log C/GDP +error term , then transform to ERROR CORRECTION MODEL ( VAR FRAMEWORK)