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Resolving the Growth‐Equality Paradox? The Synergistic Effects of Returnee Entrepreneurship Policies on Income Distribution

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  • Shaozhuang Wang
  • Xueru Yang

Abstract

Returnee migrant entrepreneurs are pivotal agents of rural revitalization. Policies fostering their entrepreneurship directly address structural bottlenecks in China's countryside. This study evaluates the comprehensive impact and mechanisms of two key returnee entrepreneurship policies in China, namely the returnee entrepreneurship pilot policy and the rural entrepreneurship park policy, on rural income levels and income inequality. Using county‐level panel data from China, this study employs the propensity score matching‐generalized difference‐in‐difference method for causal inference. The findings indicate that the returnee entrepreneurship pilot policy and the rural entrepreneurship park policy are complementary. Their coordinated implementation significantly promotes rural income growth, as well as effectively reduces rural income inequality. Mechanism analysis reveals that returnee entrepreneurship policies operate through three channels: entrepreneurial effects, employment effects, and agglomeration effects. These effects are achieved through the construction of a more inclusive entrepreneurial ecosystem. Furthermore, this study highlights the heterogeneity in the effects of returnee entrepreneurship policies. The effectiveness of these policies is influenced differently by factors such as the development of digital inclusive finance, cultural characteristics, and economic development levels. The results emphasize that fostering an inclusive entrepreneurial ecosystem through complementary policy design is essential for achieving both growth and equity goals in returnee entrepreneurship policies. To this end, policymakers should focus on strengthening synergistic effects between policies and deepening the construction of entrepreneurial ecosystems. This strategy can more effectively stimulate entrepreneurial vitality, expand employment opportunities, and optimize the income distribution pattern.

Suggested Citation

  • Shaozhuang Wang & Xueru Yang, 2026. "Resolving the Growth‐Equality Paradox? The Synergistic Effects of Returnee Entrepreneurship Policies on Income Distribution," Growth and Change, Wiley Blackwell, vol. 57(2), June.
    • Handle: RePEc:bla:growch:v:57:y:2026:i:2:n:e70121
    DOI: 10.1111/grow.70121
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