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Impact of agricultural production trusteeship on the urban-rural income gap and its mechanism

Author

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  • Ren, Haixia
  • Xian, Zhe
  • Chen, Junya
  • Zhang, Wenjuan
  • Kang, Xiaohong

Abstract

On the bases of panel data of 30 provinces in China from 2012 to 2023, this study uses a two-way fixed-effect model to empirically explore the impact and mechanism of agricultural production trusteeship (APT) on the urban–rural income gap, and discusses the moderating role of rural human capital. Results show that trusteeship narrows the income gap, with stronger effects in central and western regions. The mechanism analysis reveals that trusteeship boosts agricultural total factor productivity (TFP) through technological progress and efficiency, ultimately narrowing the income gap. Additionally, rural human capital positively moderates this impact. Targeted countermeasures and suggestions are provided based on these findings.

Suggested Citation

  • Ren, Haixia & Xian, Zhe & Chen, Junya & Zhang, Wenjuan & Kang, Xiaohong, 2025. "Impact of agricultural production trusteeship on the urban-rural income gap and its mechanism," Finance Research Letters, Elsevier, vol. 81(C).
    • Handle: RePEc:eee:finlet:v:81:y:2025:i:c:s1544612325008025
    DOI: 10.1016/j.frl.2025.107543
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