Multi-source strategic interaction in China’s public services: a spatial econometric analysis

This study explores the form and sources of strategic interaction in China's public services among local governments. The results indicate the existence of positive strategic interaction in provincial public services, with multiple sources of interaction, ranging from a direct mechanism, such as the spillover effect of yardstick competition among local governments, to an indirect mechanism, such as the resource flow effect under population mobility and market integration. Nevertheless, the obstacle of economic catch-up and hukou system reduces the interaction intensity. Furthermore, strategic interaction causes provincial public services to converge to a consistent level, indicating an equalization trend.