An Integrated Analysis of GWR Models and Spatial Econometric Global Models to Decompose the Driving Forces of the Township Consumption Development in Gansu, China

The investigation of township consumption patterns has become highly significant in order to emphasize the importance of township consumption patterns in economic development and policy formulation. To attain township consumption development in underdeveloped areas is a significant way to meet the general criterion of “rich life” under China’s Rural Revitalization strategy. The primary objective of this study is to evaluate the driving forces that contribute to the development of township consumption in underdeveloped areas such as Gansu Province, China, and then scientifically design and implement a strategy for township consumption development in Gansu, all of which are related to the broader interests of rural revitalization. The study used 1233 township data of Gansu Province, China. The study integrated geographically weighted regression (GWR) and a spatial econometric global (SEG) model for data analysis and interpretation. The integration of these two models can comprehensively capture both spatial heterogeneity and spatial independence concurrently. First, we conducted integrated analyses of GWR and SEG models using consistent settings of spatial weight matrix elements, with GWR focusing on spatial heterogeneity and SEG models on spatial spillover. Second, the permanent resident population, the number of financial institution outlets, the types of townships, and the characteristics of townships had a substantial significant effect on the development of township consumption in Gansu, China. In addition, the ratio of residents with access to basic medical insurance was found to be negatively significant. The revitalization strategy for township consumption in Gansu Province, China should prioritize increasing the permanent resident population of townships, accelerating the development of township urbanization, accelerating the construction of township consumption infrastructures, and strengthening financial support from township financial institutions.