The threshold effect of the urban‐rural income disparity on real economic growth in China

2008 ◽  
Vol 29 (3) ◽  
pp. 39-53 ◽  
Author(s):  
Shaoping Wang ◽  
Zhigang Ouyang
Keyword(s):  
Economic Growth ◽  
Threshold Effect ◽  
Income Disparity ◽  
Rural Income ◽  
Urban Rural

scholarly journals Fiscal Behavior Volatility, Economic Growth, and Urban-Rural Income Disparity

2014 ◽  
Vol 2 (3) ◽  
pp. 217-225
Author(s):  
Yufeng Wang ◽  
Shulin Liu
Keyword(s):  
Economic Growth ◽  
Financial Development ◽  
Local Governments ◽  
Economic Transition ◽  
Income Disparity ◽  
Dynamic Panel Model ◽  
Rural Income ◽  
Panel Model ◽  
Urban Rural ◽  
Fiscal Behavior

AbstractFiscal behavior of local governments has great volatility in China, especially in the period of economic transition. This paper estimates fiscal behavior volatility by making regression analysis of panel data of 30 provinces from 1994 to 2011. Then we establish a dynamic panel model to study the direct and indirect impact of the fiscal behavior volatility on the urban-rural income disparity. Empirical results show that urban-rural income disparity has nonlinear relationship with economic growth and financial development and that fiscal behavior volatility expands the urban-rural income disparity directly and indirectly. The larger fiscal behavior volatility comes greater urban-rural income disparity. We also find that the urban-rural income disparity is further enlarged through dual economic structure. If one of the economic growth and financial development is fixed, the other one has an inverted U-shaped relationship with urban-rural income disparity.

scholarly journals How Does the Urban-rural Income Disparity Affect Economic Growth?

2017 ◽  
Vol 65 (1) ◽  
pp. 245-257
Author(s):  
Xiaojing Chao ◽  
Xiaopeng Tan
Keyword(s):  
Economic Growth ◽  
Human Capital ◽  
Rural Areas ◽  
Capital Investment ◽  
Human Capital Investment ◽  
Negative Influence ◽  
Income Disparity ◽  
Rural Income ◽  
Urban Rural ◽  
Urban And Rural Areas

The overall relation of urban-rural income inequality to economic growth is complex. As the widening income gap between urban and rural areas, the rural residents are unwilling and unable to invest in human capital, which restricts China’s long-term economic growth. By empirically analyzing Chinese provincial panel data from 1995 to 2012, we find the material capital investment and the human capital investment have highly significantly positive coefficients for explaining economic growth, however, the urban-rural income disparity is significantly negative for the human capital investment, moreover, the change shows that there is a negative influence of urban-rural income disparity on the economic growth.

scholarly journals How does the urban–rural income gap affect the quality of China’s economic growth?

2018 ◽  
Vol 1 (1) ◽  
pp. 136-148 ◽  
Author(s):  
Baoping Ren ◽  
Xiaojing Chao
Keyword(s):  
Economic Growth ◽  
Industrial Structure ◽  
Empirical Test ◽  
Theoretical Interpretation ◽  
Content Type ◽  
Income Gap ◽  
Rural Income ◽  
Urban Rural ◽  
Growth Quality

Purpose Based on the theoretical definition of the quality of economic growth as well as the availability and reliability of the given data, the purpose of this paper is to build an evaluation system of a regional economic growth quality on three levels: conditions, processes and results. Design/methodology/approach From the perspective of economic quality, this paper offers a theoretical interpretation on how the urban–rural income gap affects the quality of economic growth and takes an empirical test on the sample panel data from 30 provinces and regions through difference GMM and system GMM models. Findings The results show that the excessively large income gap will influence economic growth in terms of the foundation, operation and the outcome, thereby, restricting the quality of economic growth. In addition, investments in human and physical capital and improvements in terms of transport infrastructure, industrial structure and economic openness play an active role in economic growth quality, whereas government expenditure scale, financial development and the deviation of industrial structure have a negative effect. Originality/value There has been a substantial amount of experience and evidence on the research about the issue of China’s income distribution and the quantity of economic growth, whereas there are relatively fewer discussions about the income distribution and the quality of economic growth. This paper, based on what has been mentioned above, tries to give a theoretical interpretation and an empirical test to describe the relationship between urban–rural income gap and the quality of economic growth from the quality point of view.

Urban–rural income disparity and inbound tourism: Spatial evidence from China

2019 ◽  
Vol 26 (7) ◽  
pp. 1231-1247 ◽  
Author(s):  
Wenming Shi ◽  
Meifeng Luo ◽  
Mengjie Jin ◽  
Seu Keow Cheng ◽  
Kevin X. Li
Keyword(s):  
Spatial Econometrics ◽  
National Level ◽  
Spillover Effects ◽  
Western Region ◽  
Income Disparity ◽  
Rural Income ◽  
Inbound Tourism ◽  
Urban Rural ◽  
The Western Region

The challenging concern regarding how the benefits of inbound tourism can be evenly distributed, especially among urban and rural individuals, has received considerable attention in China. To address this concern, a spatial econometrics approach is used to estimate the spillover effects of inbound tourism on urban–rural income disparity (URID). An empirical analysis using the spatial Durbin model was conducted for 31 Chinese provinces covering the period from 2003 to 2017. Our findings suggest that at the national level, local inbound tourism significantly reduces the local URID, while neighboring inbound tourism significantly increases the local URID. At the regional level, the role of inbound tourism in reducing the local URID is only detected in the western region. The spillover effects of inbound tourism are positive and significant in the eastern/northeastern region but negative in the western region. In general, these findings provide insights into the importance of interregional tourism policies and strategies for inbound tourism development in China.

The impact of foreign direct investment on urban-rural income inequality

2016 ◽  
Vol 8 (3) ◽  
pp. 480-497 ◽  
Author(s):  
Chunlai Chen
Keyword(s):  
Economic Growth ◽  
International Trade ◽  
Income Inequality ◽  
Fixed Effects ◽  
Knowledge Spillovers ◽  
Employment Creation ◽  
Content Type ◽  
Rural Income ◽  
Urban Rural ◽  
The Impact

Purpose The purpose of this paper is to analyse the impact of foreign direct investment (FDI) on urban-rural income inequality in China. Design/methodology/approach This study uses the provincial-level panel data and employs the fixed-effects instrumental variable regression technique to investigate empirically the impact of FDI on urban-rural income inequality in China. Findings The study finds that while FDI has directly contributed to reducing urban-rural income inequality through employment creation, knowledge spillovers and contribution to economic growth, FDI has also contributed to increasing urban-rural income inequality through international trade. Practical implications The study has some policy implications. First, as the study finds that FDI not only contributes to reducing urban-rural income inequality through employment creation, knowledge spillovers and contribution to economic growth, but also contributes to increasing urban-rural income inequality through international trade, therefore, apart from improving local economic and technological conditions to attract more FDI inflows, China should re-design FDI policies by shifting away from encouraging export-oriented FDI to encouraging FDI flows into the industries and sectors in line with China’s overall economic structural adjustments and industrial upgrading. Second, policies should focus on increasing investment in infrastructure development and in public education, which not only can reduce urban-rural income inequality but also can attract more FDI inflows. And finally policies should be designed to accelerate urbanisation development by focusing on urban-rural integrated development, household registration system reform and proper settlement of rural migrants in urban areas, thus reducing urban-rural income inequality. Originality/value The paper makes two major contributions to the literature. First, the paper adopts the fixed-effects instrumental variable regression technique to deal with the endogeneity issues in estimating the impact of FDI on urban-rural income inequality, producing more consistent estimates. Second, the paper investigates not only the direct impact of FDI on urban-rural income inequality through the effects of employment creation, knowledge spillovers and contribution to economic growth, but also the indirect impact of FDI on urban-rural income inequality through its activities in international trade, adding new empirical evidence to the sparse literature on the impact of FDI on income inequality in China.

State Capacity, Local Fiscal Autonomy, and Urban—Rural Income Disparity in China

2009 ◽  
Vol 23 (3) ◽  
pp. 355-381 ◽  
Author(s):  
Ran Tao ◽  
Kaizhong Yang ◽  
Mingxing Liu
Keyword(s):  
State Capacity ◽  
Income Disparity ◽  
Fiscal Autonomy ◽  
Rural Income ◽  
Urban Rural
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