IDEAS home Printed from https://ideas.repec.org/a/pal/palcom/v9y2022i1d10.1057_s41599-022-01367-2.html
   My bibliography  Save this article

The impact of basic public services on residents’ consumption in China

Author

Listed:
  • Xing Xiong

    (Chongqing Technology and Business University
    Chongqing Technology and Business University)

  • Xinghou Yu

    (Chongqing Technology and Business University
    Chongqing Technology and Business University)

  • Yuxin Wang

    (Chongqing Technology and Business University
    Chongqing Technology and Business University)

Abstract

China has the largest market potential in the world, but the resident consumption rate is relatively low. Releasing China’s consumption potential will contribute to the sustainable growth of China’s economy and the global economic recovery. Based on the supply of basic public services, this study analyzes the income and substitution effects of basic public services on residents’ consumption, with a view to finding channels and measures to stimulate residents’ consumption from the public sector. We first used the TOPSIS method of entropy weight to evaluate the public service level of 31 provinces in China, and then built a regression model to analyze the impact of public services on residents’ consumption, urban residents’ consumption, rural residents’ consumption, and the consumption gap between urban and rural residents. The study found that the improvement of public services has a significant positive effect on consumption, while public services also have a positive effect on narrowing the consumption gap between urban and rural residents, but the impact on urban and rural residents is different, and the positive effect on urban residents’ consumption is higher than that of rural residents. Based on the research results, this paper puts forward policy implications. On the one hand, we should increase the expenditure on basic public services, and on the other hand, we should optimize the layout of basic public services between urban and rural areas.

Suggested Citation

  • Xing Xiong & Xinghou Yu & Yuxin Wang, 2022. "The impact of basic public services on residents’ consumption in China," Palgrave Communications, Palgrave Macmillan, vol. 9(1), pages 1-8, December.
    • Handle: RePEc:pal:palcom:v:9:y:2022:i:1:d:10.1057_s41599-022-01367-2
    DOI: 10.1057/s41599-022-01367-2
    as

    Download full text from publisher

    File URL: http://link.springer.com/10.1057/s41599-022-01367-2
    File Function: Abstract
    Download Restriction: Access to full text is restricted to subscribers.
    File URL: https://libkey.io/10.1057/s41599-022-01367-2?utm_source=ideas
    LibKey link: if access is restricted and if your library uses this service, LibKey will redirect you to where you can use your library subscription to access this item
    ---><---

    As the access to this document is restricted, you may want to search for a different version of it.

    References listed on IDEAS

    as
    1. Bateman, Ian J. & Balmford, Ben, 2018. "Public funding for public goods: A post-Brexit perspective on principles for agricultural policy," Land Use Policy, Elsevier, vol. 79(C), pages 293-300.
    2. Lange, Andreas & Schwirplies, Claudia & Ziegler, Andreas, 2017. "On the interrelation between the consumption of impure public goods and the provision of direct donations: Theory and empirical evidence," Resource and Energy Economics, Elsevier, vol. 47(C), pages 72-88.
    3. Ocampo, Lanndon & Alinsub, Jovir & Casul, Ruselle Anne & Enquig, Germellie & Luar, Mitzi & Panuncillon, Noche & Bongo, Miriam & Ocampo, Christine Omela, 2019. "Public service quality evaluation with SERVQUAL and AHP-TOPSIS: A case of Philippine government agencies," Socio-Economic Planning Sciences, Elsevier, vol. 68(C).
    4. Czyżewski, Bazyli & Matuszczak, Anna & Czyżewski, Andrzej & Brelik, Agnieszka, 2021. "Public goods in rural areas as endogenous drivers of income: Developing a framework for country landscape valuation," Land Use Policy, Elsevier, vol. 107(C).
    5. Song, Zhongchen, 2022. "The Relationship between Government and Private Consumption: A Replication Study of Fiorito and Kollintzas (European Economic Review, 2004)," Journal of Comments and Replications in Economics (JCRE), ZBW - Leibniz Information Centre for Economics, vol. 1(2022-1), pages 1-24.
    6. Fiorito, Riccardo & Kollintzas, Tryphon, 2004. "Public goods, merit goods, and the relation between private and government consumption," European Economic Review, Elsevier, vol. 48(6), pages 1367-1398, December.
    7. Jinxian Wang & Chen Wang & Yan Zhang, 2020. "Four Decades Of Poverty And Consumption In China," The Singapore Economic Review (SER), World Scientific Publishing Co. Pte. Ltd., vol. 65(supp01), pages 117-138, December.
    8. Chunshan Zhou & Ming Li & Guojun Zhang & Yuqu Wang & Song Liu, 2020. "Heterogeneity of Internal Migrant Household Consumption in Host Cities: A Comparison of Skilled Migrants and Labor Migrants in China," Sustainability, MDPI, vol. 12(18), pages 1-16, September.
    9. John E. Roemer, 2002. "Equality of opportunity: A progress report," Social Choice and Welfare, Springer;The Society for Social Choice and Welfare, vol. 19(2), pages 455-471.
    10. Boustan, Leah Platt, 2013. "Local public goods and the demand for high-income municipalities," Journal of Urban Economics, Elsevier, vol. 76(C), pages 71-82.
    11. Gao, Bo & liu, Xuan & Hou, Shuxia & Jia, Danyang & Du, Mingjing, 2019. "Resolving public goods dilemma by giving the poor more support," Applied Mathematics and Computation, Elsevier, vol. 362(C), pages 1-1.
    Full references (including those not matched with items on IDEAS)

    Citations

    Citations are extracted by the CitEc Project, subscribe to its RSS feed for this item.
    as


    Cited by:

    1. Haiping Xu & Chuqiao Zhang & Yawen Huang, 2023. "Social trust, social capital, and subjective well-being of rural residents: micro-empirical evidence based on the Chinese General Social Survey (CGSS)," Palgrave Communications, Palgrave Macmillan, vol. 10(1), pages 1-13, December.

    Most related items

    These are the items that most often cite the same works as this one and are cited by the same works as this one.
    1. Wang, Shu-Ling, 2021. "Fiscal stimulus in a high-debt economy? A DSGE analysis," Economic Modelling, Elsevier, vol. 98(C), pages 118-135.
    2. Fleurbaey, Marc & Schokkaert, Erik, 2009. "Unfair inequalities in health and health care," Journal of Health Economics, Elsevier, vol. 28(1), pages 73-90, January.
    3. Francesco Busato & Bruno Chiarini, 2013. "Steady State Laffer Curve with the Underground Economy," Public Finance Review, , vol. 41(5), pages 608-632, September.
    4. Chong Lu, 2022. "The effect of migration on rural residents’ intergenerational subjective social status mobility in China," Quality & Quantity: International Journal of Methodology, Springer, vol. 56(5), pages 3279-3308, October.
    5. Gerald Carlino & Nicholas Zarra & Robert Inman & Thorsten Drautzburg, 2019. "Fiscal Policy in Monetary Unions: State Partisanship and its Macroeconomic Effects," 2019 Meeting Papers 434, Society for Economic Dynamics.
    6. Florencia Amábile & Marisa Bucheli & Máximo Rossi, 2014. "Inequality and Poverty in Uruguay by Race: the Impact of Fiscal Policies," Documentos de Trabajo (working papers) 0214, Department of Economics - dECON.
    7. Song, Zhongchen, 2022. "The Relationship between Government and Private Consumption: A Replication Study of Fiorito and Kollintzas (European Economic Review, 2004)," Journal of Comments and Replications in Economics (JCRE), ZBW - Leibniz Information Centre for Economics, vol. 1(2022-1), pages 1-24.
    8. L. Marattin & S. Salotti, 2009. "The Response of Private Consumption to Different Public Spending Categories: VAR Evidence from UK," Working Papers 670, Dipartimento Scienze Economiche, Universita' di Bologna.
    9. Gerasimos T. Soldatos, 2020. "Merit goods and excise taxation in quasilinear markets for complementary private consumption," Public Sector Economics, Institute of Public Finance, vol. 44(4), pages 551-566.
    10. Zuo, Wenming & Bai, Weijing & Zhu, Wenfeng & He, Xinming & Qiu, Xinxin, 2022. "Changes in service quality of sharing accommodation: Evidence from airbnb," Technology in Society, Elsevier, vol. 71(C).
    11. George Cusworth & Jennifer Dodsworth, 2021. "Using the ‘good farmer’ concept to explore agricultural attitudes to the provision of public goods. A case study of participants in an English agri-environment scheme," Agriculture and Human Values, Springer;The Agriculture, Food, & Human Values Society (AFHVS), vol. 38(4), pages 929-941, December.
    12. Guilherme Bandeira & Evi Pappa & Rana Sajedi & Eugenia Vella, 2018. "Fiscal Consolidation in a Low-Inflation Environment: Pay Cuts versus Lost Jobs," International Journal of Central Banking, International Journal of Central Banking, vol. 14(3), pages 7-52, June.
    13. Henrik Jordahl & Luca Micheletto, 2005. "Optimal Utilitarian Taxation and Horizontal Equity," Journal of Public Economic Theory, Association for Public Economic Theory, vol. 7(4), pages 681-708, October.
    14. Chen, Jie & Nong, Huifu, 2016. "The heterogeneity of market supply effects of public housing provision: Empirical evidence from China," Journal of Housing Economics, Elsevier, vol. 33(C), pages 115-127.
    15. Huang, Bwo-Nung & Hwang, M.J. & Yang, C.W., 2008. "Causal relationship between energy consumption and GDP growth revisited: A dynamic panel data approach," Ecological Economics, Elsevier, vol. 67(1), pages 41-54, August.
    16. Löffler, Max & Siegloch, Sebastian, 2015. "Property Taxation, Local Labor Markets and Rental Housing," VfS Annual Conference 2015 (Muenster): Economic Development - Theory and Policy 112967, Verein für Socialpolitik / German Economic Association.
    17. Mann Stefan, 2018. "A Mesoeconomic Approach to a Basic Income," Basic Income Studies, De Gruyter, vol. 13(1), pages 1-8, June.
    18. Yumin Shu & Zhongying Qi, 2020. "The Effect of Market-Oriented Government Fiscal Expenditure on the Evolution of Industrial Structure: Evidence from Shenzhen, China," Sustainability, MDPI, vol. 12(9), pages 1-17, May.
    19. Vincenzo Carrieri & Apostolos Davillas & Andrew M. Jones, 2023. "Equality of opportunity and the expansion of higher education in the UK," Review of Income and Wealth, International Association for Research in Income and Wealth, vol. 69(4), pages 861-885, December.
    20. Yum K. Kwan, 2006. "The Direct Substitution Between Government and Private Consumption in East Asia," NBER Working Papers 12431, National Bureau of Economic Research, Inc.

    More about this item

    Statistics

    Access and download statistics

    Corrections

    All material on this site has been provided by the respective publishers and authors. You can help correct errors and omissions. When requesting a correction, please mention this item's handle: RePEc:pal:palcom:v:9:y:2022:i:1:d:10.1057_s41599-022-01367-2. See general information about how to correct material in RePEc.

    If you have authored this item and are not yet registered with RePEc, we encourage you to do it here. This allows to link your profile to this item. It also allows you to accept potential citations to this item that we are uncertain about.

    If CitEc recognized a bibliographic reference but did not link an item in RePEc to it, you can help with this form .

    If you know of missing items citing this one, you can help us creating those links by adding the relevant references in the same way as above, for each refering item. If you are a registered author of this item, you may also want to check the "citations" tab in your RePEc Author Service profile, as there may be some citations waiting for confirmation.

    For technical questions regarding this item, or to correct its authors, title, abstract, bibliographic or download information, contact: Sonal Shukla or Springer Nature Abstracting and Indexing (email available below). General contact details of provider: https://www.nature.com/ .

    Please note that corrections may take a couple of weeks to filter through the various RePEc services.

    IDEAS is a RePEc service. RePEc uses bibliographic data supplied by the respective publishers.