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1 – 10 of 754The digital economy is expected to revive the countryside and reduce the current level of urban–rural inequality. Nevertheless, whether rural e-commerce can narrow the urban–rural…
Abstract
Purpose
The digital economy is expected to revive the countryside and reduce the current level of urban–rural inequality. Nevertheless, whether rural e-commerce can narrow the urban–rural income gap still requires further analysis. The purpose of this paper is to clarify whether this goal is, in fact, being achieved.
Design/methodology/approach
Taobao villages have become the epitome of rural e-commerce development in China. Therefore, this paper matches the data of Taobao villages and the data of prefecture-level cities from 2014 to 2019, and employs a two-way fixed effect model, nonlinear model, instrumental variable model and interactive fixed effects model to explore the impact of rural e-commerce on the urban–rural income gap.
Findings
Firstly, the ability of urban residents to share rural e-commerce development is higher than that of rural residents, which actually widens the urban–rural income gap. Secondly, the migration to cities of rural families that have profited from e-commerce, and the return of working-class people to the countryside, are two factors that are contributing to the widening of the urban–rural income gap. Thirdly, the farther the distance from the urban area and the higher the spatial agglomeration of the rural e-commerce cluster is, the weaker the impact on widening the urban–rural income gap will be. Finally, while industrial-led rural e-commerce is responsible for widening the urban–rural income gap, agricultural-led rural e-commerce has no significant impact on the urban–rural income gap.
Originality/value
To the best of the authors' knowledge, this paper is the first to analyze the impact of rural e-commerce on the urban–rural income gap from the perspective of the coverage of Taobao villages. This empirical study will enrich existing theoretical perspectives on urban–rural integration under the backdrop of the digital economy.
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Ying Song, Yi Zhang, Yafei Wang, Bowen Zhang and Jiafu Su
Taking 30 provincial samples from 2001 to 2017 in mainland China as the research objects, this paper aims to evaluate the impact and effects of foreign direct investment (FDI) on…
Abstract
Purpose
Taking 30 provincial samples from 2001 to 2017 in mainland China as the research objects, this paper aims to evaluate the impact and effects of foreign direct investment (FDI) on the urban–rural income gap and reveals heterogeneity across regions.
Design/methodology/approach
Firstly, the Theil index is used to measure the income gap between 30 provinces in mainland China from 2001 to 2017, then the spatial econometric model is used to empirically test the impact of foreign direct investment on China’s urban–rural income gap and its heterogeneity across regions. Finally, a robustness test is performed.
Findings
The results show that there is a significant inverted U-shaped relationship between FDI and the urban–rural income gap in China. That is, FDI expands the urban–rural income gap in the short term and helps to converge it in the long term. In the eastern region, FDI has a convergence effect on the urban–rural income gap in the short term, which increases the long term. However, in the central and western regions, the relationship between FDI and urban–rural income gap has a weak inverted U shape.
Originality/value
By assessing the impact of FDI on the urban–rural income gap, this work provides decision-making support for China and other developing countries to improve investment policies and income distribution policies.
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The purpose of this study is to elaborate the theoretical mechanism of rural credit input affecting the urban–rural income gap from the perspective of labor transfer, and use a…
Abstract
Purpose
The purpose of this study is to elaborate the theoretical mechanism of rural credit input affecting the urban–rural income gap from the perspective of labor transfer, and use a dynamic panel mediation model to test the transmission mechanism of rural credit input affecting the urban–rural income gap through labor transfer, so as to provide an empirical basis for narrowing the urban–rural income gap in China.
Design/methodology/approach
This paper constructs a mechanism analysis framework for rural credit input affecting the urban–rural income gap. From the perspective of resource allocation and labor transfer, the authors expound the transmission path of rural credit input to the urban–rural income gap and analyze the theoretical mechanism of rural credit input that affects the urban–rural income gap through labor transfer. Based on this, this paper uses the dynamic panel mediation model to test the effect relationship between rural credit input, labor transfer and urban–rural income gap in 31 provinces of China from 2009 to 2018.
Findings
In theory, increasing rural credit input can ease the financial constraints on the development of “agriculture, rural areas and farmers” and provide capital accumulation for the development of rural non-agricultural industries. The development of rural non-agricultural industries can provide more jobs for rural surplus labor, thereby increasing the labor rate of return in rural areas, and ultimately conducive to narrowing the urban–rural income gap. Further, increasing rural credit input can improve the development level of rural non-agricultural industries, thereby promoting the transfer of agricultural labor. At the same time, rural credit input based on the intermediary variable of labor transfer has a significant inhibitory effect on the urban–rural income gap.
Research limitations/implications
This study mainly focuses on the relationship between rural credit input, labor transfer and urban–rural income gap, so it is impossible to use micro-level data to further verify the impact of rural credit input on labor transfer. At the same time, the collection of indicators of rural credit investment in the China Financial Yearbook only started in 2009, which limited the number of samples to a certain extent.
Practical implications
This paper assumes that the economy is mainly composed of urban and rural economic sectors. Therefore, labor can flow freely between urban and rural areas. However, in the near future, China's rural secondary and tertiary industries may develop rapidly, especially with the in-depth implementation of rural revitalization strategy, it is very important to pay attention to the current situation of rural industrial structure and incorporate the factors such as rural industrial structure into the existing model.
Social implications
This study attempts to provide a new perspective and inspiration for rural credit input, the optimal allocation of labor force and narrowing the urban–rural income gap under China's rural revitalization strategy.
Originality/value
Based on the analysis framework of neoclassical economic theory, this paper uses the constant elasticity of substitution production function to establish an urban–rural two-sector nested model that includes credit supply variables and analyzes the mechanism of rural credit input affecting the urban–rural income gap through labor transfer.
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Yitao Jiang, Xiaojun Shi, Shunming Zhang and Jingjing Ji
The purpose of this paper is to shed light on the effect of high‐level human capital investment, using tertiary education as the proxy, on the urban‐rural income gap in China.
Abstract
Purpose
The purpose of this paper is to shed light on the effect of high‐level human capital investment, using tertiary education as the proxy, on the urban‐rural income gap in China.
Design/methodology/approach
Using a panel dataset covering 28 provinces of China over the period from 1988 to 2007, this paper employs Hansen's method and two‐step GMM‐SYS estimator to estimate the threshold regression model and the dynamic fixed‐effect panel model, respectively.
Findings
The urban‐rural income gap is found to be related to high‐level human capital investment in an inverted U‐shaped pattern with respect to economic development level. The estimated threshold turning point is around 20,000 RMB GDP per capita. This estimate is sufficiently robust to model specifications and variants of the dependent variable.
Social implications
The authors forecast that high‐level human capital investment could play a role in bridging the urban‐rural income gap at the national level by 2014, when China's GDP per capita assumes an annual growth rate of 7.5 percent.
Originality/value
This, it is believed, is the first research to find an inverted U‐shaped pattern for high‐level human capital investment and urban‐rural income gap nexus in China.
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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…
Abstract
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.
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Diandian Chen and Yong Ma
Since 1978, China has made tremendous economic achievements through industrial upgrading. However, these achievements are accompanied by an expanding income gap between rural and…
Abstract
Purpose
Since 1978, China has made tremendous economic achievements through industrial upgrading. However, these achievements are accompanied by an expanding income gap between rural and urban areas. The purpose of this paper is to examine the relationship between industrial structure and urban–rural income inequality in China.
Design/methodology/approach
Using the fixed-effects model and provincial data for the period 1985–2019, this paper estimates a linear relationship between industrial structure and urban–rural income inequality. By decomposing total income inequality into four components, the paper then analyzes how industrial structure affects each component.
Findings
The results show that industrial structure imbalance and industrial upgrading are positively associated with urban–rural income inequality. The positive effect of industrial imbalance mainly comes from widening the wage gap, while that of industrial upgrading mainly comes from aggravating business income inequality and property income inequality. Moreover, industrial balance and upgrading are conducive to increasing the share of wage income at the cost of property income.
Originality/value
By progressively examining the total inequality and the inequality of income components, this paper provides a better understanding of how industrial structure affects urban and rural income inequality. The findings of this study highlight the “inequality cost” associated with industrial structure adjustment, which provide policy-related insights on the balance development of urban and rural areas.
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Zi Hui Yin and Chang Hwan Choi
A wide urban–rural income gap exists in China despite the implementation of pro-rural policies. Additionally, with the proliferation of the internet and information technology…
Abstract
Purpose
A wide urban–rural income gap exists in China despite the implementation of pro-rural policies. Additionally, with the proliferation of the internet and information technology, the promotion effect of e-commerce on the economy has become apparent. Accordingly, China has been actively encouraging rural households to participate in e-commerce activities. This study aims to examine the effect of e-commerce on the urban–rural income gap.
Design/methodology/approach
In the study, linear and panel threshold models were applied to provincial-level panel data from 2002 to 2018.
Findings
The results of the linear model show that e-commerce contributes to narrowing the urban–rural income gap. Moreover, the panel threshold model results show that the narrowing effect exists in regions where the e-commerce intensity is at a medium-to-high level and urbanization is at a relatively low level; otherwise, e-commerce has no effect. In addition, in regions with a relatively high level of public expenditure and education, the income-gap-narrowing effect of e-commerce is more than double.
Practical implications
The urban–rural income gap can be reduced by promoting e-commerce and reducing the urban–rural divide in e-commerce use.
Originality/value
To determine how varying levels of e-commerce development affect the urban–rural income gap across regions, the study proposes four key causes of the digital divide in e-commerce: e-commerce intensity, public expenditure level, urbanization level and education level and applies the variables as threshold variables to examine the non-linear effect of e-commerce on the income gap.
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In the 69 years since the founding of the People’s Republic of China, especially the 40 years since the reform and opening-up, the relationship between urban and rural areas has…
Abstract
Purpose
In the 69 years since the founding of the People’s Republic of China, especially the 40 years since the reform and opening-up, the relationship between urban and rural areas has undergone profound change. When the deepening reform of the urban-rural relationship is entering a critical period, it is necessary to reassess the evolution of the urban-rural relationship in China and draw a picture for that relationship in the future. The paper aims to discuss these issues.
Design/methodology/approach
This paper combs the policies on the urban and rural development since the founding of the People’s Republic of China, and analyzes macro data on the industries, population, personal income, and other aspects.
Findings
The study found that this urbanism affects individuals’ lives and the choices of society through the will of the state, and then provides feedback at the whole level of social values.
Originality/value
This paper divides the evolution of China’s urban-rural relationship into two major stages – nurturing cities with rural areas and leading rural areas with cities, which are then subdivided into five periods. The features of the relationship between the urban and rural areas in different periods are analyzed, and the future development of urban-rural relations is also considered.
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Since 2017, China's digital economy has accounted for more than 30% of the country's GDP. The digital economy has become the main driving force of China's economic development…
Abstract
Purpose
Since 2017, China's digital economy has accounted for more than 30% of the country's GDP. The digital economy has become the main driving force of China's economic development. Moreover, the digital economy has also changed the traditional modes of production and distribution between urban and rural areas. This paper aims to explore the influential mechanism of digital economy infrastructure (DEI) on the urban-rural income gap (URIG).
Design/methodology/approach
By analyzing the theoretical model of the URIG, this paper constructs a theoretical analysis framework and clarifies the key roles of rural land circulation (RLC) and resident population urbanization (RPU) in the relationship between DEI and the URIG.
Findings
The DEI can effectively reduce the URIG; the regression coefficient (RC) was −0.109. The reduction effect is mainly reflected in: 1) the wage income gap between urban and rural residents (RC = −0.128) and 2) the net property income gap of urban and rural residents (RC = −0.321). Also, for the spatial spillover effect, the path effect of “DEI – RLC – URIG” is almost equal to the path effect of “DEI – RPU – URIG”; for the local effect, the path effect of the former is far smaller than the latter. Moreover, when the RPU reaches the threshold of 86.29%, the DEI will expand the URIG (RC = 0.201).
Originality/value
This paper proposes a theoretical framework for the impact of DEI on the URIG, explores the mechanism of RLC and RPU in the DEI and URIG and enriches the theory of traditional research on URIG.
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Yongqin Wang and Xin Gao
This paper studies the political economy of the endogenous urban–rural divide in two dimensions: labor market and provision of public goods.
Abstract
Purpose
This paper studies the political economy of the endogenous urban–rural divide in two dimensions: labor market and provision of public goods.
Design/methodology/approach
This paper gives a dual-sector model endogenously depending on the consumption of public goods (club goods), the number of rural–urban migrants and the tax rate (transfer payments).
Findings
According to the research findings in this paper, the constraints on the participation of rural residents portray the rural residents' bargaining power, and in the game between the urban elites and the rural residents, tax rates depend on the preferences of the urban elites and the constraints urban elites and the rural residents jointly face. Therefore, the urban elites have to set tax rates deviating from the most preferred ones. The model in this paper can explain a series of empirical findings and yield new theoretical findings for empirical testing.
Originality/value
Significantly, the paper finds that the increase in agricultural productivity will lead to industrialization, accompanied by the disintegration of the dual-sector model. However, though the increase in industrial productivity can accelerate industrialization, it will further expand the urban–rural divide.
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