The Common Prosperity Effect of Integrated Urban Rural Development: Evidence from China

Common prosperity is an essential requirement of socialism with Chinese characteristics for a new era. Problems caused by the urban rural dual structure, such as resource misallocation, ecological-economic imbalance, and insufficient farmer income growth, not only hinder common prosperity but also conflict with the sustainable development strategy. As the core path to break the dual structure and narrow gaps, the multi-dimensional impact and mechanism of urban rural integrated development on common prosperity need systematic verification. Based on panel data of 31 Chinese provinces from 2014 to 2023, this paper uses fixed-effects and mechanism test models to examine its direct, indirect, and spatial spillover effects, focusing on transmission mechanisms of wage, property, and operating incomes. Findings show: First, it exerts significant positive direct and cross-regional spillover effects on common prosperity; Second, wage and property incomes are key transmission paths, while operating income’s mediating effect is unclear; Third, effects vary geographically, stronger in eastern/central China, weaker in northeast China and insignificant in west China; Fourth, economic and spatial integration play prominent roles, social service integration has inhibitory effect, and ecological integration’s effect is under-released. Accordingly, this paper puts forward countermeasures to optimize resource allocation, tackle the rural operating income dilemma, advance regional coordination, and enhance equal social services, providing references for improving common prosperity policies and rural sustainable development.