Can Economic Growth Reduce Public Dissatisfaction? Evidence from a Panel Threshold Model in Chinese Cities

Abstract

Much is known about the relationship between economic growth and satisfaction, while little is known about the relationship between economic growth and dissatisfaction. This study measures the levels of public dissatisfaction in 36 Chinese cities from 2011 to 2018 using data from an official online petition platform. We construct panel data to analyze the impact of per capita GDP and per capita income on public dissatisfaction. The results show that per capita income has a significant negative effect on public dissatisfaction, but only once the per capita income exceeds a threshold amount. In the extended discussion, the nonlinear relationship between income and public dissatisfaction is described as a stair-shaped curve. The results imply the need for developing countries to adhere to economic policies based on income maximization.