This study is aimed to identify the role of population mobility on malariatransmission in the international border areas of Yunnan in order that the resourceallocation can be analyzed by using spillover effect from population mobility. Itmainly consists of two parts. The first part is model building, in which panel dataof 48 counties in Yunnan and neighboring countries during 1994-1997 were employed.After weighting the effect from neighbors by length of boundary between two sides,the effect of crossing border movement was analyzed using regression technique. Theresult showed that mobile population is an important factor in influencing malariatransmission in the border counties of Yunnan. Surveillance and vector control wasnot found to have statistically significant effect on malaria transmission in theborder areas. The second part is resource allocation analysis. Based on the coefficients ofpopulation mobility from different sides. spillover effect of mobile population wasanalyzed so that we can suggest a border resource allocation in malaria control undersuch a circumstance. The study showed us that the malaria transmission was effectedby the combination of boundary line and malaria seventy in neighboring country. Someborder counties of Yunnan are facing higher risk from increased crossing bordermovement compared to others. It suggests that allocating more resource in a higherrisk county will lead to more efficiency in resource allocation.