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

This study analyzes the impact of basic public services on residents' consumption in China, aiming to identify ways to stimulate consumption from the public sector. Using the TOPSIS method with entropy weight to evaluate public service levels across 31 provinces, and a regression model to analyze the impact on overall consumption, urban consumption, rural consumption, and the urban-rural consumption gap, the study finds that improved public services positively affect consumption. This positive effect is stronger for urban residents than rural residents, while public services also help narrow the consumption gap between urban and rural areas. Policy implications include increasing expenditure on basic public services and optimizing their distribution between urban and rural regions.

Xing Xiong, Xinghou Yu, Yuxin Wang