Crowding-in Effect:The Impact Of Cross-border Consumption On The Regional Residents’ Consumption In China

At present,Chinese residents’ cross-border consumption is rising.At the same time,domestic residents’ savings rate is too high,which leads to a huge effect to the growth of Chinese consumption level,leading to the domestic economy being affected greatly.In recent years,the cross-border consumption of regional resident is rising,and together with,the cross-border consumption of foreign tourists is also gradually rising.However,the impact of cross-border consumption of foreign tourists on regional consumer spending remains unknown.The result from different study of the scholars is different,and the reason can contribute to the analysis of why Chinese residents overseas cross-border consumption is rising,and together with,guiding the consumption backflow,which could help the government reasonably guide the cross-border consumption of foreign tourists.As for the literatures,the domestic and foreign scholars used different data obtaining different results.Some think that the cross-border consumption has a crowding out effect on regional consumption,while others are for cross-border consumption has a crowding in effect on regional consumption.And some literatures appeared that the performance of the role for regional cross-border consumer consumption is relatively weak or no effect.By establishing utility optimization model,this paper deduces the basic measurement equation of wealth and consumption.After building the model,we select 31 province,autonomous region and municipality from 2003 to 2012.We divided the data into two groups,one is the region that is coastal or close to the border,and others is in the other group.The study is based on that the foreign tourists’ cross-border consumption has some impact on regional residents’ disposable income and wealth,then draws the foreign tourists’ cross-border consumption showing a crowding in effect on regional consumption.Finally,in view of the impact of foreign tourists’ cross-border consumption in China on residents,crowding out effect is less than the crowding in effect,so it is proposed to improve the supervision system of the commodity market,changing the current trade barriers and other related initiatives.