scholarly journals Effects of Domestic Tourism on Urban-Rural Income Inequality: Evidence from China

2021 ◽  
Vol 13 (16) ◽  
pp. 9009
Author(s):  
Zhixin Zeng ◽  
Xiaojun Wang
Keyword(s):  
Income Inequality ◽  
Causal Link ◽  
Disposable Income ◽  
World Heritage Site ◽  
Urban Residents ◽  
Rural Residents ◽  
Operating Income ◽  
Rural Income ◽  
Domestic Tourism ◽  
Urban Rural

Most studies examining the relationship between domestic tourism and urban-rural income inequality have found a positive correlation. However, the causal link between them is difficult to establish due to many potential sources of endogeneity. By including World Heritage Site (henceforth WHS) designation in the set of instruments, this paper estimates the causal effects of domestic tourism on urban-rural income inequality within 31 China’s provinces from 1998 to 2018. Our results show that developing domestic tourism can reduce urban-rural income inequality by raising income of rural residents more than twice as much as that of urban residents. Specifically, a 10% increase in domestic tourism earnings could increase the average disposable income of urban residents by 0.35% and that of rural residents by 0.94%, resulting in a 0.59% reduction in the urban-rural income ratio. According to channels analysis, domestic tourism enhances the disposable income of rural residents mainly through raising household operating income from agriculture, manufacturing, and services.

scholarly journals Spatial Effects of Domestic Tourism on Urban-Rural Income Inequality

2021 ◽  
Vol 13 (16) ◽  
pp. 9394
Author(s):  
Zhixin Zeng ◽  
Xiaojun Wang
Keyword(s):  
Income Inequality ◽  
Rural Areas ◽  
Spillover Effect ◽  
Eastern Region ◽  
Spatial Effects ◽  
Rural Income ◽  
Domestic Tourism ◽  
Urban Rural ◽  
The Impact ◽  
Tourism Revenue

Although much of the recent research has explored the relationship between domestic tourism and income inequality among regions, provinces, and cities, few studies have examined the impact of domestic tourism on income inequality between urban and rural areas within a region. This paper uses a panel dataset covering China’s 31 provinces for 21 years to investigate the spatial spillover effect of domestic tourism on urban-rural income inequality. An increase in domestic tourism revenue in neighboring provinces leads to a reduction in the local province’s urban-rural income inequality. Innovatively, we decompose domestic tourism revenue and consider the circumstances in different provinces. An increase in the number of neighboring provinces’ domestic tourists’ arrival decreases the local province’s urban-rural income inequality in western provinces but increases the inequality in eastern provinces; the effect is insignificant in central provinces. In order to improve urban-rural income inequality by attracting domestic tourists, this study suggests a collaborative strategy for the western region, a low-priority strategy for the central region, and a mitigation strategy for the eastern region.

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.

Clustering, growth and inequality in China

2020 ◽  
Vol 20 (5) ◽  
pp. 1207-1239
Author(s):  
Di Guo ◽  
Kun Jiang ◽  
Chenggang Xu ◽  
Xiyi Yang
Keyword(s):  
Economic Growth ◽  
Panel Data ◽  
Income Inequality ◽  
Instrumental Variables ◽  
Industrial Clusters ◽  
Regional Economic Growth ◽  
County Level ◽  
Cluster Development ◽  
Rural Income ◽  
Urban Rural

Abstract This study examines the effects of China’s industrial clusters on regional economic growth and urban–rural income inequality within a region. A density-based index (DBI) is developed to capture the unique features of cluster development in China. From a county-level DBI panel data constructed based on firm- and county-level datasets, we find that clusters enhance local economic growth substantially. Moreover, the existence of entrepreneurial clusters (clusters mainly consist of nonstate-owned firms) helps to reduce local urban–rural income inequality by increasing the income of local rural residents. We also find that the clustering effects on growth and reduction of inequality are less significant in more urbanized regions or megacities. Identification issues are carefully addressed by deploying two-stage estimations with instrumental variables and Granger test.

The effects of financial deepening on income inequality based on grey incidence analysis

2014 ◽  
Vol 4 (3) ◽  
pp. 495-504 ◽  
Author(s):  
Quanda Zhang
Keyword(s):  
Income Inequality ◽  
Credit Market ◽  
Insurance Market ◽  
Urban Residents ◽  
Financial Deepening ◽  
Rural Residents ◽  
Content Type ◽  
Per Capita ◽  
Incidence Analysis ◽  
The Relationship

Purpose – The purpose of this paper is to clarify the relationship between income inequality and financial deepening. The majority of theoretical studies on the relationship between them argue that financial deepening has a positive effect on the income inequality. This paper aims to study the case of China, and explores whether the effects of financial deepening on income inequality varies between urban residents and rural residents. Design/methodology/approach – Using the grey incidence analysis, this paper first calculates the degree of grey incidence between dependent variables, i.e. per capita disposable income of urban residents, per capita net income of rural residents and overall Theil Inequality Index for China, and independent variables, depth of credit, depth of direct financing and depth of insurance. Next, multiple non-linear regression is introduced to build the model. With the method of unit root test and co-integration test, some equations are given to show the clear relationship among the variables. Findings – The empirical results indicate that the development of credit market does not have a strong relationship both with the growth of income and income inequality. While the development of both the direct financing market and the insurance market is closely related to the growth of income and income inequality. Originality/value – The results of this paper suggest that the protection of the rights and interests of medium-sized investors is the key for the capital market. Meanwhile, the insurance market should be encouraged to expand in both breadth and depth, which helps to take full advantage of its functions. As for the credit market, more resources should be allocated to those who need them most the small- and medium-sized enterprises, which will contribute to the growth of the income for the majority and narrowing the income gap.

scholarly journals COVID-19 and Regional Income Inequality in China

2021 ◽  
Vol 9 ◽  
Author(s):  
Jianfu Shen ◽  
Wai Yan Shum ◽  
Tsun Se Cheong ◽  
Lafang Wang
Keyword(s):  
Income Inequality ◽  
Economic Consequences ◽  
Disposable Income ◽  
Rural Residents ◽  
Regional Income ◽  
Social Distancing ◽  
Income Per Capita ◽  
Regional Income Inequality ◽  
Per Capita ◽  
The Impact

This study investigates the impact of COVID-19 and social distancing policies on regional income inequality. We base our study on a sample of 295 prefecture (and above) cities in 31 provinces in China. A distribution dynamics approach is employed to reveal the trend and movement of disposable income per capita in each city before the COVID-19 pandemic, during the COVID-19 pandemic, and in the period when the COVID-19 was under the control. The findings reveal significant negative economic consequences of the COVID-19 in the first quarter of 2020 and show that most cities will converge to a level of disposable income which is much less than the Pre-COVID level if the COVID pandemic persists. Regional income inequality has intensified in the cities that have a longer duration of stringent social distancing policies during the COVID-19 pandemic and disappeared in the cities with policies of short duration. Disposable income per capita for urban residents recovered quickly when the transmission of coronavirus was effectively contained; and yet the impact of the pandemic on rural residents remains unresolved, if not intensified. This study demonstrates a significant divergence of the trend of disposable income across cities with different durations of social distancing policies and between urban and rural residents. It also highlights the importance of stringent social distancing policies in containing the spread of virus in a short time and calls for special policy attention for rural regions in the recovery from the COVID-19.

scholarly journals Can Digital Inclusive Finance Narrow the Chinese Urban–Rural Income Gap? The Perspective of the Regional Urban–Rural Income Structure

2021 ◽  
Vol 13 (11) ◽  
pp. 6427
Author(s):  
Naishu Yu ◽  
Yanzhe Wang
Keyword(s):  
Western China ◽  
Rural Residents ◽  
Income Gap ◽  
Rural Income ◽  
Urban And Rural Residents ◽  
Property Income ◽  
Urban Rural ◽  
Transfer Income ◽  
The Impact ◽  
Wage Income

This paper empirically studies the impact of digital inclusive finance on the income structure of urban and rural residents in eastern, central, and western China. The results show that, first, digital inclusive finance is beneficial to narrowing the urban–rural per capita disposable income gap that has a disequilibrium effect among regions. Second, narrowing the wage income, property income, and transfer income gaps is beneficial but has little effect on the net operating income gap between urban and rural residents. Third, narrowing the wage income, property income, and transfer income gaps reduces the total income gap, and the wage income gap has the strongest intermediary force. In the end, the paper puts forward corresponding countermeasures for the development of digital inclusive finance to narrow each of these income gaps in different regions of China.

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