Study on the Assessment of the Long-term Impact of Consumer Voucher Issuance on Specific Industries and Regional Economies

Abstract

This study aims to assess the long-term impact of government-issued consumption vouchers on the economies of specific industries and regions. Consumption vouchers have been widely adopted as a fiscal policy tool in many countries to stimulate consumption and promote economic growth. We study consumption voucher policies implemented at different times and places, and use in-depth data analysis and economic modelling to explore their lasting effects on industries and regions. First, we find that the consumption voucher policy is able to significantly boost the demand of relevant industries in the short term, especially the retail, catering and tourism industries. This has a positive impact on job creation and short-term economic growth. However, in the long run, the effects of the consumption voucher policy vary by region and industry. In some regions, the voucher policy can help consolidate and enhance the competitiveness of local industries, for example by raising the profile of the local tourism and catering industries. However, in other places, the long-term effects are not obvious, as the consumption voucher policy may have led to a temporary peak in demand but did not stimulate long-term investment and innovation. In addition, our study also found that the government needs to pay special attention to the allocation of funds and the design of policies to ensure that the benefits of the consumption voucher policy are maximised. For some regions and sectors that were hard hit by the epidemic, the consumption voucher policy may need to be combined with other policy measures to promote a more balanced and sustainable economic recovery.