The Impact of Government Intervention in Rural Tourism Development on Residents’ Income: A Quasi-Natural Experiment from China

The examination of government intervention in rural tourism within developing countries remains a critical area of academic inquiry. This study investigates the relationship between government intervention in rural tourism and the income growth of rural residents by utilizing a Difference-in-Differences method based on county-level data from the China County-Level Statistical Yearbooks from 2006 to 2022. The findings indicate that government-supported rural tourism development significantly promotes income growth among rural populations. This effect can be attributed to three key mechanisms: stimulation of entrepreneurial activity, promotion of related industrial development, and optimization of resource allocation. Heterogeneity analysis reveals that the income-enhancing effect is more pronounced in counties with stronger economic foundations, more developed agricultural sectors, and favorable geographic conditions. However, the intervention has not significantly reduced the urban–rural income gap or reversed the declining trend in the labor income share, suggesting that more targeted and inclusive strategies are needed. These findings offer important policy implications for developing countries aiming to foster rural revitalization through industrial policy instruments.