Can equalization of public services narrow the regional disparities in China? A spatial econometrics approach

•Classifying public services into “operating” and “non-operating” public services•Measuring the equalization levels of three kinds of public services in China•Empirical studies with dynamic spatial econometric models.•Public services can promote the regional equality of incomes and consumptions.

Regional disparities that challenge the economy and public administration must be confronted by the governments and public in developing countries. As the extensive mode of economic growth has caused many problems in China, it is necessary to find other ways to promote the development of poor areas to narrow regional disparities in the country. This paper measures the equalization of public services and residents' living standards in China, based on a provincial panel data for the period 2001-2013, to analyze the impact of the equalization of public services on China's regional disparities. The empirical results, based on spatial econometrics models, show that the equalization of all types of public services can promote the regional equality of incomes and consumptions. There is also evidence suggesting that the regional disparities are affected by other economic and social factors.