IDEAS home Printed from https://ideas.repec.org/a/plo/pone00/0270964.html
   My bibliography  Save this article

Mechanism and empirical evidence on new-type urbanization to narrow the urban–rural income gap: Evidence from China’s provincial data

Author

Listed:
  • Na Zhao

Abstract

The main component of China’s income gap is the urban–rural income gap, which is largely affected by urbanization. It is worth studying how new-type urbanization affects the income gap between urban and rural areas. Research mostly focuses on the urbanization rate as the core explanatory variable to explain the impact using one or two factors. This paper analyzes the mechanism of the effect using a comprehensive number of factors, with the quality of new-type urbanization development as the core explanatory variable. In terms of theoretical research, we believe that new-type urbanization affects the urban–rural income gap by promoting the transfer of labor, changing industrial structure, and policy tendency. Using both static and dynamic empirical analyses, we test the impact of new-type urbanization on the urban–rural income gap based on China’s provincial data. We find that new-type urbanization is conducive to narrowing the income gap between urban and rural areas. The transfer of labor significantly reduces the urban–rural income gap. However, the upgrading of industrial structure will enlarge the gap. The impact of China’s policy orientation is negligible. Policy should focus on promoting urbanization and improving the marginal rate of return of agriculture, improve the level of human capital, reverse the mismatch between employment structure and industrial structure, increase support for rural areas, and make substantial progress in promoting common prosperity.

Suggested Citation

  • Na Zhao, 2024. "Mechanism and empirical evidence on new-type urbanization to narrow the urban–rural income gap: Evidence from China’s provincial data," PLOS ONE, Public Library of Science, vol. 19(8), pages 1-15, August.
  • Handle: RePEc:plo:pone00:0270964
    DOI: 10.1371/journal.pone.0270964
    as

    Download full text from publisher

    File URL: https://journals.plos.org/plosone/article?id=10.1371/journal.pone.0270964
    Download Restriction: no

    File URL: https://journals.plos.org/plosone/article/file?id=10.1371/journal.pone.0270964&type=printable
    Download Restriction: no

    File URL: https://libkey.io/10.1371/journal.pone.0270964?utm_source=ideas
    LibKey link: if access is restricted and if your library uses this service, LibKey will redirect you to where you can use your library subscription to access this item
    ---><---

    References listed on IDEAS

    as
    1. Masahisa Fujita & Paul Krugman & Anthony J. Venables, 2001. "The Spatial Economy: Cities, Regions, and International Trade," MIT Press Books, The MIT Press, edition 1, volume 1, number 0262561476, December.
    2. Robinson, Sherman, 1976. "A Note on the U Hypothesis Relating Income Inequality and Economic Development," American Economic Review, American Economic Association, vol. 66(3), pages 437-440, June.
    3. Jia Wang, 2017. "Rural-to-urban Migration and Rising Evaluation Standards for Subjective Social Status in Contemporary China," Social Indicators Research: An International and Interdisciplinary Journal for Quality-of-Life Measurement, Springer, vol. 134(3), pages 1113-1134, December.
    4. Mehta, Aashish & Hasan, Rana, 2012. "The effects of trade and services liberalization on wage inequality in India," International Review of Economics & Finance, Elsevier, vol. 23(C), pages 75-90.
    5. Iwona Kantor-Pietraga, 2021. "Does One Decade of Urban Policy for the Shrinking City Make Visible Progress in Urban Re-Urbanization? A Case Study of Bytom, Poland," Sustainability, MDPI, vol. 13(8), pages 1-17, April.
    6. Liang Zhang & Xubing Zhang & Shenggu Yuan & Kai Wang, 2021. "Economic, Social, and Ecological Impact Evaluation of Traffic Network in Beijing–Tianjin–Hebei Urban Agglomeration Based on the Entropy Weight TOPSIS Method," Sustainability, MDPI, vol. 13(4), pages 1-18, February.
    Full references (including those not matched with items on IDEAS)

    Most related items

    These are the items that most often cite the same works as this one and are cited by the same works as this one.
    1. Markusen, James R. & Venables, Anthony J., 1999. "Foreign direct investment as a catalyst for industrial development," European Economic Review, Elsevier, vol. 43(2), pages 335-356, February.
    2. Ionuț Jianu & Marin Dinu & Dragoș Huru & Alexandru Bodislav, 2021. "Examining the Relationship between Income Inequality and Growth from the Perspective of EU Member States’ Stage of Development," Sustainability, MDPI, vol. 13(9), pages 1-16, May.
    3. Arief Anshory Yusuf, 2005. "A Survey on Growth and Inequality: Does Improved Inequality Data Have Anything to Say?," Working Papers in Economics and Development Studies (WoPEDS) 200501, Department of Economics, Padjadjaran University, revised Oct 2005.
    4. Klaus Desmet & Esteban Rossi‐Hansberg, 2010. "On Spatial Dynamics," Journal of Regional Science, Wiley Blackwell, vol. 50(1), pages 43-63, February.
    5. Kym Anderson, 2005. "On the Virtues of Multilateral Trade Negotiations," The Economic Record, The Economic Society of Australia, vol. 81(255), pages 414-438, December.
    6. Ghosh, sudeshna, 2017. "Education Attainment Forecasting and Economic Inequality United States," MPRA Paper 89712, University Library of Munich, Germany.
    7. Athukorala, Prema-chandra & Narayanan, Suresh, 2018. "Economic corridors and regional development: The Malaysian experience," World Development, Elsevier, vol. 106(C), pages 1-14.
    8. BOURDEAU-LEPAGE, Lise & HURIOT, Jean-Marie, 2006. "Megacities vs. Global Cities. The institutional hypothesis," LEG - Document de travail - Economie 2006-05, LEG, Laboratoire d'Economie et de Gestion, CNRS, Université de Bourgogne.
    9. Saka Jimoh Olakunle, 2023. "Digital Technology and Trade Performance in Sub-Saharan Africa," Journal of Applied Economic Research, Graduate School of Economics and Management, Ural Federal University, vol. 22(3), pages 480-496.
    10. Takatoshi Tabuchi & Jacques-François Thisse, 2006. "Regional Specialization, Urban Hierarchy, And Commuting Costs," International Economic Review, Department of Economics, University of Pennsylvania and Osaka University Institute of Social and Economic Research Association, vol. 47(4), pages 1295-1317, November.
    11. Paulo B. Brito, 2022. "The dynamics of growth and distribution in a spatially heterogeneous world," Portuguese Economic Journal, Springer;Instituto Superior de Economia e Gestao, vol. 21(3), pages 311-350, September.
    12. Walker, Douglas O., 2007. "Patterns of income distribution among world regions," Journal of Policy Modeling, Elsevier, vol. 29(4), pages 643-655.
    13. Forslid, Rikard, 1999. "Agglomeration with Human and Physical Capital: an Analytically Solvable Case," CEPR Discussion Papers 2102, C.E.P.R. Discussion Papers.
    14. Ertan Oktay & Giray Gozgor, 2013. "Trade And Regional Development In A Developing Country: The Case Of Turkey," Review of Urban & Regional Development Studies, Wiley Blackwell, vol. 25(3), pages 201-212, November.
    15. Johnson, Noel D. & Koyama, Mark, 2017. "Jewish communities and city growth in preindustrial Europe," Journal of Development Economics, Elsevier, vol. 127(C), pages 339-354.
    16. Cristiano Perugini & Gaetano Martino, 2008. "Income Inequality Within European Regions: Determinants And Effects On Growth," Review of Income and Wealth, International Association for Research in Income and Wealth, vol. 54(3), pages 373-406, September.
    17. Farrokhi, Farid & Jinkins, David, 2019. "Wage inequality and the location of cities," Journal of Urban Economics, Elsevier, vol. 111(C), pages 76-92.
    18. Stephen J. Redding, 2010. "The Empirics Of New Economic Geography," Journal of Regional Science, Wiley Blackwell, vol. 50(1), pages 297-311, February.
    19. Laura Resmini, 2003. "Economic integration and regional patterns of industry location in transition countries," ERSA conference papers ersa03p399, European Regional Science Association.
    20. Donald R. Davis & David E. Weinstein, 2008. "A Search For Multiple Equilibria In Urban Industrial Structure," Journal of Regional Science, Wiley Blackwell, vol. 48(1), pages 29-65, February.

    More about this item

    Statistics

    Access and download statistics

    Corrections

    All material on this site has been provided by the respective publishers and authors. You can help correct errors and omissions. When requesting a correction, please mention this item's handle: RePEc:plo:pone00:0270964. See general information about how to correct material in RePEc.

    If you have authored this item and are not yet registered with RePEc, we encourage you to do it here. This allows to link your profile to this item. It also allows you to accept potential citations to this item that we are uncertain about.

    If CitEc recognized a bibliographic reference but did not link an item in RePEc to it, you can help with this form .

    If you know of missing items citing this one, you can help us creating those links by adding the relevant references in the same way as above, for each refering item. If you are a registered author of this item, you may also want to check the "citations" tab in your RePEc Author Service profile, as there may be some citations waiting for confirmation.

    For technical questions regarding this item, or to correct its authors, title, abstract, bibliographic or download information, contact: plosone (email available below). General contact details of provider: https://journals.plos.org/plosone/ .

    Please note that corrections may take a couple of weeks to filter through the various RePEc services.

    IDEAS is a RePEc service. RePEc uses bibliographic data supplied by the respective publishers.