How does government spending and opening-up influence Chinese consumer spending?

Sammanfattning: Based on the characteristics of economic growth in China's transition period, this paper builds a theoretical model based on Barro model, and analyzes the influence of local government expenditure and opening up to the consumption of residents. After that, this study will use China's interprovincial panel data from 2012 to 2016 to establish panel data model to test the impact of local government expenditure and opening up on household consumption. Preliminary studies show that the direct impact and interaction effect of government expenditure and opening up to consumption in different regions are different. Finally, based on the theoretical research and empirical research results, this paper gets some conclusion about How does government spending and opening-up influence Chinese consumer spending. Key words: openness, government spending, consumer spending.