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Can agglomeration of producer services reduce urban–rural income inequality? The case of China

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  • Jun Zhao
  • Xiucheng Dong
  • Kangyin Dong

Abstract

In this study, we construct a theoretical model and investigate the impact of agglomeration of producer services (APS) on urban–rural income inequality in China. The mediating effects are explored. Results indicate that the growth of APS can not only narrow China's urban–rural income gap directly, but also have an indirect negative effect on income inequality by promoting urbanisation evolution and human capital accumulation. Furthermore, the agglomeration of six sub‐industries is conducive to reducing the income gap. Among them, the agglomeration of the traffic, transport, storage and post has the greatest effect, while the effect of information transfer, computer services and software agglomeration is not significant. In addition, the results of regional heterogeneity show that only in the low APS region can APS and income inequality show bidirectional causality.

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  • Jun Zhao & Xiucheng Dong & Kangyin Dong, 2021. "Can agglomeration of producer services reduce urban–rural income inequality? The case of China," Australian Economic Papers, Wiley Blackwell, vol. 60(4), pages 736-762, December.
    • Handle: RePEc:bla:ausecp:v:60:y:2021:i:4:p:736-762
    DOI: 10.1111/1467-8454.12229
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    2. Dong, Kangyin & Dou, Yue & Jiang, Qingzhe, 2022. "Income inequality, energy poverty, and energy efficiency: Who cause who and how?," Technological Forecasting and Social Change, Elsevier, vol. 179(C).
    3. Haoyun Meng & Peidong Deng & Jinbo Zhang, 2022. "Nonlinear Impact of Circulation-Industry Intelligentization on the Urban–Rural Income Gap: Evidence from China," Sustainability, MDPI, vol. 14(15), pages 1-26, August.
    4. Meseret Chanieabate & Hai He & Chuyue Guo & Betelhem Abrahamgeremew & Yuanji Huang, 2023. "Examining the Relationship between Transportation Infrastructure, Urbanization Level and Rural-Urban Income Gap in China," Sustainability, MDPI, vol. 15(10), pages 1-20, May.
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    6. Yuxin Meng & Lu Liu & Qiying Ran, 2022. "Can Urban Green Transformation Reduce the Urban–Rural Income Gap? Empirical Evidence Based on Spatial Durbin Model and Mediation Effect Model," Sustainability, MDPI, vol. 14(24), pages 1-24, December.
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    8. Wang, Jianda & Dong, Xiucheng & Dong, Kangyin, 2022. "How does ICT agglomeration affect carbon emissions? The case of Yangtze River Delta urban agglomeration in China," Energy Economics, Elsevier, vol. 111(C).

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