The Impact Of The Supply Level Of Basic Public Services On The Residents’ Consumption Structure

At present,expanding domestic demand and promoting consumption are the key to accelerating the establishment of a “dual circulation” development pattern in which domestic economic cycle plays a leading role while international economic cycle remains its extension and supplement.Promoting the upgrading of the residents’ consumption structure can effectively increase the final consumption rate.Improving the supply level of the basic public services to make people live a happy life is an important policy concept of government.Then,whether the promotion of the supply level of basic public services will help the household consumption structure be better?This paper focuses on the changes in the consumption structure of urban and rural residents.By sorting out the influence mechanism of improving the supply level of basic public services on residents’ consumption structure,this paper explores the heterogeneity of basic public services on the different consumption types of urban and rural residents,and proposes the recommendations of how to improve the consumption structure from the perspective of public services.First of all,based on the literature review on basic public services and residents’ consumption,this paper researches on the mechanism of influence between basic public services and residents’ consumption from two aspects of promotion and suppression.Then,using the relevant data of 31 provinces from 2007 to 2020,this article has constructed a comprehensive evaluation system on the supply level of basic public services to obtain the basic public services supply level index by using the CRITIC method,and the index is used to replace basic public services variables.On this basic,this article analyzes the current situation of basic public services and residential consumption.The research finds that: First,the national supply level of basic public services keeps increasing,and the gap in the level of basic public services between different regions is gradually narrowing.In 2012,the supply level of basic public services in the western region has exceeded the supply level of the central region.Second,the consumption expenditure of residents is increasing,the consumption gap between urban residents and rural residents is gradually increasing,and the consumption gap between regions is gradually increasing.Third,the average propensity to consume of urban residents is gradually decreasing,the average propensity to consume of rural residents is gradually increasing.The consumption structure is gradually improving.Next,the article conducts empirical analysis from the national and regional levels.The first is at the national level:（1）Through the static panel model analysis,it is found that improving the supply level of basic public services can upgrade the consumption structure and the improvement of the supply level of basic public services has more effects on the consumption structure of rural residents than that of urban residents.（2）Through the dynamic GMM model analysis,it is found that the supply level of basic public services in the current period has no significant impact on the consumption structure of residents,and the supply level of basic public services lagging one period has a significant improvement effect on the consumption structure.（3）By conducting panel the threshold model analysis,it is found that the impact of the supply level of basic public services on the consumption structure of residents has a threshold effect.When the supply level of the basic public service exceeds the threshold value,the intensity of improving the residents’ consumption structure will reduce.The second is at the regional level:（4）Through the static panel model analysis,it is found that the supply level of basic public services has no effect on improving the consumption structure in the central region,but has greatly improved the consumption structure of residents in the western region.Therefore,while improving the supply level of basic public services in the western region,China should increase its financial support and resource transfer to the central region to improve the supply level of basic public services.Finally,the article summarizes it,and puts forward the suggestions of improving the resident consumption structure from the perspective of basic public services.