Welcome to the InfoSci Platform
Causes of China's Low Consumption from the Perspective of Local Governmental Competition

Causes of China's Low Consumption from the Perspective of Local Governmental Competition

Yaling Zhu, Huifang Zhang
Copyright: © 2020 |Volume: 13 |Issue: 1 |Pages: 17
ISSN: 1935-5726|EISSN: 1935-5734|EISBN13: 9781799800743|DOI: 10.4018/IJISSCM.2020010102
Cite Article Cite Article

MLA

Zhu, Yaling, and Huifang Zhang. "Causes of China's Low Consumption from the Perspective of Local Governmental Competition." IJISSCM vol.13, no.1 2020: pp.15-31. http://doi.org/10.4018/IJISSCM.2020010102

APA

Zhu, Y. & Zhang, H. (2020). Causes of China's Low Consumption from the Perspective of Local Governmental Competition. International Journal of Information Systems and Supply Chain Management (IJISSCM), 13(1), 15-31. http://doi.org/10.4018/IJISSCM.2020010102

Chicago

Zhu, Yaling, and Huifang Zhang. "Causes of China's Low Consumption from the Perspective of Local Governmental Competition," International Journal of Information Systems and Supply Chain Management (IJISSCM) 13, no.1: 15-31. http://doi.org/10.4018/IJISSCM.2020010102

Export Reference

Mendeley
Favorite Full-Issue Download

Abstract

Taking into account the three-sector general equilibrium perspective of the government, business, and household sectors and taking government public goods investment as intermediary; this article builds mathematical models of local governmental competition and three-sector consumption. It also theoretically analyzes the impacting path of local governmental competition, causing increased investment in public goods, thereby reducing consumption. At the same time, based on the model of China's provincial panel data from 1993 to 2015, the empirical analysis shows that a 1% increase in the level of competition among local governments will result in a corresponding decrease of 0.757% in total consumption, 0.348% in governmental competition, 0.340% in business consumption and 0.366% in household consumption. Local governmental competition leads to the government's tendency to invest in public goods and reduces the regional consumption, which especially damages the consumption capacity of the household sector.

Request Access

You do not own this content. Please login to recommend this title to your institution's librarian or purchase it from the IGI Global bookstore.