Spatial-Temporal Differentiation and Spatial Interaction Effect Analysis of Residents’ Consumption Capacity and Consumption Upgrading in China

Abstract

To investigate Chinese residents’ consumption capacity and consumption upgrading, this study uses the Moran index, the Dagum Gini coefficient method, and the SPVAR model to analyze the spatial-temporal differentiation and interactions between the two; the entropy method is employed to measure the development level of both factors. As per the results, from 2008 to 2020, the levels of consumption capacity and consumption upgrading have increased rapidly and are distinctly unbalanced, but there is a clear trend of convergence between the developments in each province, and both show spatial agglomeration, mainly in the “high–high” and “low–low” clusters. The “high–high” clusters are primarily concentrated in the more economically developed eastern coastal and central fast-rising regions, with inter-regional differences being the main reason for the regional differences between the two. In terms of spatial interaction, the two are Granger causalities, with positive feedback effects that promote each other, and have a “center–periphery” spatial spillover effect, where the center generates spatial spillover and also suffers reverse shocks from the periphery, while the shock effect is limited by inter-provincial economic ties and geographical distance.