Spatial spillover and the factors influencing public service supply in Sichuan province, China

Abstract

This article examines the spatial characteristics of public service supply and the factors influencing such supply in cities of Sichuan Province, China using spatial-autocorrelation and spatial econometric models with statistical data in 2012. The results demonstrate that expenditures on different types of public services present different spatial autocorrelation patterns. Although the spatial differences in basic public service expenditures are relatively small, a clear fan-shaped spillover to the east can be seen in Chengdu City. Chengdu also shows high clustering of advanced public service expenditures, being a typical core-periphery pattern. Post-earthquake reconstruction expenditures are clustered in the "5.12 Wenchuan earthquake" region and spill over toward cities to the east. The efficiency of public services in the mountainous areas in western Sichuan is low and exhibits a pattern of low-low spatial autocorrelation. The efficiency of public service supply is affected by economic, social, political and geographical factors. Based on the results of this analysis, we recommend a supply strategy that incorporates different types of public services and a specialized public service supply strategy for mountainous areas. Overall public service efficiency should be enhanced by focusing on narrowing the gap in farmers' income among regions and accelerating urbanization. Decision-makers should consider moresupportive policies with regard to providing basic public services in mountainous areas to ensure an equalized supply of basic public services. To enhance the efficiency of advanced public service supply, additional growth pole should be encouraged and incentivized; however, investments are required to drive the development of the peripheral regions through regional economic integration. Both software and hardware types of infrastructure are required to supply services efficiently during post-disaster reconstruction.