IDEAS home Printed from https://ideas.repec.org/a/sae/sagope/v12y2022i1p21582440221085007.html
   My bibliography  Save this article

Does the Equalization of Public Services Effect Regional Disparities in the Ratio of Investment to Consumption? Evidence From Provincial Level in China

Author

Listed:
  • Fuqiang Dai
  • Hao Liu
  • Xia Zhang
  • Qing Li

Abstract

Insufficient equalization of public services and coexistence of high investment and low consumption are two major dilemmas facing the high-quality development of China’s economy. This study first evaluated the level of equalization of public services by provincial panel data from 2013 to 2017. Then econometric models were constructed to investigate the effect of the equalization of public services on the regional disparities in the ratio of investment to consumption (IC). Results show that the overall level of equalization of public services in China is low and there are large regional differences. Average values of the relative level of equalization of public services show an increasing trend in order of the eastern, central, northeastern, and western regions. The ratio of IC in China also exhibits large regional differences. Public education significantly negatively affects the IC in China, and the effects exist in the eastern and central regions. The seven evaluation criteria of equalization of public services in different regions have different effects on the ratio of investment to consumption. Therefore, according to the characteristics of the relationship between the equalization of public services and the ratio of investment to consumption at the whole or regional scales, a reasonable pathway should be selected to improve the current situation of high investment and low consumption and promote high-quality and sustainable development of the Chinese economy under the new normal.

Suggested Citation

  • Fuqiang Dai & Hao Liu & Xia Zhang & Qing Li, 2022. "Does the Equalization of Public Services Effect Regional Disparities in the Ratio of Investment to Consumption? Evidence From Provincial Level in China," SAGE Open, , vol. 12(1), pages 21582440221, March.
  • Handle: RePEc:sae:sagope:v:12:y:2022:i:1:p:21582440221085007
    DOI: 10.1177/21582440221085007
    as

    Download full text from publisher

    File URL: https://journals.sagepub.com/doi/10.1177/21582440221085007
    Download Restriction: no

    File URL: https://libkey.io/10.1177/21582440221085007?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
    ---><---

    References listed on IDEAS

    as
    1. Shen, Yu & Zhang, Hongmou & Zhao, Jinhua, 2018. "Integrating shared autonomous vehicle in public transportation system: A supply-side simulation of the first-mile service in Singapore," Transportation Research Part A: Policy and Practice, Elsevier, vol. 113(C), pages 125-136.
    2. Abdiyanto, 2019. "The impact of Investment, Government Consumption and Education on Economic Growth in North Sumatra," International Journal of Science and Business, IJSAB International, vol. 3(3), pages 265-277.
    3. Banerjee, Abhijit & Duflo, Esther & Qian, Nancy, 2020. "On the road: Access to transportation infrastructure and economic growth in China," Journal of Development Economics, Elsevier, vol. 145(C).
    4. Dorsey-Palmateer, Reid & Niu, Ben, 2020. "The effect of carbon taxation on cross-border competition and energy efficiency investments," Energy Economics, Elsevier, vol. 85(C).
    5. Shi, Min, 2019. "Overinvestment and corporate governance in energy listed companies: Evidence from China," Finance Research Letters, Elsevier, vol. 30(C), pages 436-445.
    6. Chan, Kenneth S. & Dang, Vinh Q.T. & Li, Tingting & So, Jacky Y.C., 2016. "Under-consumption, trade surplus, and income inequality in China," International Review of Economics & Finance, Elsevier, vol. 43(C), pages 241-256.
    7. Zekun Li & Shenjing He & Shiliang Su & Guie Li & Fei Chen, 2020. "Public Services Equalization in Urbanizing China: Indicators, Spatiotemporal Dynamics and Implications on Regional Economic Disparities," Social Indicators Research: An International and Interdisciplinary Journal for Quality-of-Life Measurement, Springer, vol. 152(1), pages 1-65, November.
    8. Takahashi, Takaaki, 2004. "Spatial competition of governments in the investment on public facilities," Regional Science and Urban Economics, Elsevier, vol. 34(4), pages 455-488, July.
    9. Juntao Tan & Kevin Lo & Fangdao Qiu & Wenxin Liu & Jing Li & Pingyu Zhang, 2017. "Regional Economic Resilience: Resistance and Recoverability of Resource-Based Cities during Economic Crises in Northeast China," Sustainability, MDPI, vol. 9(12), pages 1-15, November.
    10. Feng Lan & Qi Wu & Tao Zhou & Huili Da, 2018. "Spatial Effects of Public Service Facilities Accessibility on Housing Prices: A Case Study of Xi’an, China," Sustainability, MDPI, vol. 10(12), pages 1-20, November.
    11. Yu, Huayi, 2012. "The influential factors of China's regional energy intensity and its spatial linkages: 1988–2007," Energy Policy, Elsevier, vol. 45(C), pages 583-593.
    12. Diansheng Dong & Yuqing Zheng & Hayden Stewart, 2020. "The effects of food sales taxes on household food spending: An application of a censored cluster model," Agricultural Economics, International Association of Agricultural Economists, vol. 51(5), pages 669-684, September.
    13. Li, Bin & Li, Tuo & Yu, Man & Chen, Bin, 2017. "Can equalization of public services narrow the regional disparities in China? A spatial econometrics approach," China Economic Review, Elsevier, vol. 44(C), pages 67-78.
    14. Jie Zhang & Junsen Zhang, 2004. "How does social security affect economic growth? Evidence from cross-country data," Journal of Population Economics, Springer;European Society for Population Economics, vol. 17(3), pages 473-500, August.
    15. Peng Su & Xiaochun Jiang & Chengbo Yang & Ting Wang & Xing Feng, 2019. "Insufficient Consumption Demand of Chinese Urban Residents: An Explanation of the Consumption Structure Effect from Income Distribution Change," Sustainability, MDPI, vol. 11(4), pages 1-22, February.
    16. Pengfei Guo & Christopher S. Tang & Yulan Wang & Ming Zhao, 2019. "The Impact of Reimbursement Policy on Social Welfare, Revisit Rate, and Waiting Time in a Public Healthcare System: Fee-for-Service Versus Bundled Payment," Service Science, INFORMS, vol. 21(1), pages 154-170, January.
    17. Alice Shiu, Raymond Li, and Chi-Keung Woo, 2016. "Economic Growth and Infrastructure Investments in Energy and Transportation: A Causality Interpretation of Chinas Western Development Strategy," The Energy Journal, International Association for Energy Economics, vol. 0(China Spe).
    18. Wang, Yizhong & Chen, Carl R. & Chen, Lifang & Huang, Ying Sophie, 2016. "Overinvestment, inflation uncertainty, and managerial overconfidence: Firm level analysis of Chinese corporations," The North American Journal of Economics and Finance, Elsevier, vol. 38(C), pages 54-69.
    19. Gazzeh, Karim & Abubakar, Ismaila Rimi, 2018. "Regional disparity in access to basic public services in Saudi Arabia: A sustainability challenge," Utilities Policy, Elsevier, vol. 52(C), pages 70-80.
    20. Wei, Xiaoquan & Wang, Chunfei & Guo, Yunnan, 2019. "Does quasi-mandatory dividend rule restrain overinvestment?," International Review of Economics & Finance, Elsevier, vol. 63(C), pages 4-23.
    21. Saidi, Samir & Shahbaz, Muhammad & Akhtar, Pervaiz, 2018. "The long-run relationships between transport energy consumption, transport infrastructure, and economic growth in MENA countries," Transportation Research Part A: Policy and Practice, Elsevier, vol. 111(C), pages 78-95.
    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. Dingqing Wang & Enqi Zhang & Hongwei Liao, 2022. "Does Fiscal Decentralization Affect Regional High-Quality Development by Changing Peoples’ Livelihood Expenditure Preferences: Provincial Evidence from China," Land, MDPI, vol. 11(9), pages 1-20, August.
    2. Zhongwu Zhang & Jian Gong & Huiqiang Ma & Jinyuan Zhang, 2023. "The Spatial and Temporal Evolution and Influencing Factors of the Coupling and Coordinated Development of Basic Public Services, Urbanization, and Tourism in China," Sustainability, MDPI, vol. 15(15), pages 1-19, July.
    3. Fanglei Zhong & Caoji Ying & Di Fan, 2022. "Public Service Delivery and the Livelihood Adaptive Capacity of Farmers and Herders: The Mediating Effect of Livelihood Capital," Land, MDPI, vol. 11(9), pages 1-16, September.

    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. Chuanming Sun & Guoxin Tan & Xingyu Chai & Haiqing Zhang, 2023. "Analysis on the Satisfaction of Public Cultural Service by Township Residents: A Qualitative Perspective," Sustainability, MDPI, vol. 15(9), pages 1-23, April.
    2. Tang, Chor Foon & Abosedra, Salah, 2019. "Logistics performance, exports, and growth: Evidence from Asian economies," Research in Transportation Economics, Elsevier, vol. 78(C).
    3. Minghui Fu & Chuanjiang Liu & Yuting Ma & Liukun Wang, 2022. "Does City Public Service Distance Increase Sense of Gain to Public Health Service? Evidence from 1394 Migrant Workers in Six Provinces," IJERPH, MDPI, vol. 19(10), pages 1-20, May.
    4. Irawan, Denny & Okimoto, Tatsuyoshi, 2021. "Overinvestment and macroeconomic uncertainty: Evidence from renewable and non-renewable resource firms," Journal of Economic Dynamics and Control, Elsevier, vol. 126(C).
    5. Denny IRAWAN & OKIMOTO Tatsuyoshi, 2021. "How Do ESG Performance and Awareness Affect Firm Value and Corporate Overinvestment?," Discussion papers 21033, Research Institute of Economy, Trade and Industry (RIETI).
    6. Saeed Solaymani & Saeed Sharafi, 2021. "A Comparative Study between Government Support and Energy Efficiency in Malaysian Transport," Sustainability, MDPI, vol. 13(11), pages 1-15, May.
    7. Ren, Yi & Tian, Yuan & Xiao, Xue, 2022. "Spatial effects of transportation infrastructure on the development of urban agglomeration integration: Evidence from the Yangtze River Economic Belt," Journal of Transport Geography, Elsevier, vol. 104(C).
    8. Li, Bin & Li, Tuo & Yu, Man & Chen, Bin, 2017. "Can equalization of public services narrow the regional disparities in China? A spatial econometrics approach," China Economic Review, Elsevier, vol. 44(C), pages 67-78.
    9. Jose Asturias & Manuel García-Santana & Roberto Ramos, 2019. "Competition and the Welfare Gains from Transportation Infrastructure: Evidence from the Golden Quadrilateral of India," Journal of the European Economic Association, European Economic Association, vol. 17(6), pages 1881-1940.
    10. Tianjiao Zhao & Xiang Xiao & Qinghui Dai, 2021. "Transportation Infrastructure Construction and High-Quality Development of Enterprises: Evidence from the Quasi-Natural Experiment of High-Speed Railway Opening in China," Sustainability, MDPI, vol. 13(23), pages 1-23, December.
    11. Konstantin Buechel, Stephan Kyburz, 2016. "Fast Track to Growth? The Impact of Railway Access on Regional Economic Development in 19th Century Switzerland," Diskussionsschriften credresearchpaper12, Universitaet Bern, Departement Volkswirtschaft - CRED.
    12. Peters, Jörg, 2016. "Infrastructure and poverty in Sub-Saharan Africa: A review," Ruhr Economic Papers 628, RWI - Leibniz-Institut für Wirtschaftsforschung, Ruhr-University Bochum, TU Dortmund University, University of Duisburg-Essen.
    13. Udi Joshua & Festus V. Bekun & Samuel A. Sarkodie, 2020. "New Insight into the Causal Linkage between Economic Expansion, FDI, Coal consumption, Pollutant emissions and Urbanization in South Africa," Working Papers 20/011, European Xtramile Centre of African Studies (EXCAS).
    14. Fan, Xiaomin & Xu, Yingzhi, 2023. "Does high-speed railway promote urban innovation? Evidence from China," Socio-Economic Planning Sciences, Elsevier, vol. 86(C).
    15. Céline Nauges & Jon Strand, 2017. "Water Hauling and Girls’ School Attendance: Some New Evidence from Ghana," Environmental & Resource Economics, Springer;European Association of Environmental and Resource Economists, vol. 66(1), pages 65-88, January.
    16. Stephan Maurer & Ferdinand Rauch, 2023. "Economic geography aspects of the Panama Canal," Oxford Economic Papers, Oxford University Press, vol. 75(1), pages 142-162.
    17. Dinkelman, Taryn & Schulhofer-Wohl, Sam, 2015. "Migration, congestion externalities, and the evaluation of spatial investments," Journal of Development Economics, Elsevier, vol. 114(C), pages 189-202.
    18. Gilles Le Garrec & Stéphane Lhuissier, 2011. "Life expectancy, heavy work and the return to education: lessons for the social security reform," SciencePo Working papers Main hal-01069511, HAL.
    19. Torberg Falch & Justina AV Fischer, 2008. "Does a generous welfare state crowd out student achievement? Panel data evidence from international student tests," TWI Research Paper Series 31, Thurgauer Wirtschaftsinstitut, Universität Konstanz.
    20. Dongmei Li & Renai Jiang & Zheyuan Lu & Shanghong Sun & Longguo Wang, 2023. "Does the Construction of High-Speed Rail Change the Development of Regional Finance?," Sustainability, MDPI, vol. 15(13), pages 1-27, July.

    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:sae:sagope:v:12:y:2022:i:1:p:21582440221085007. 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: SAGE Publications (email available below). General contact details of provider: .

    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.