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The threshold effect of urban–rural income gap on economic growth in urbanization: evidence from China

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  • Wen Zhou
  • Huichao Zhang
  • Yihua Wei

Abstract

Using a panel data set covering 31 provinces, autonomous regions and municipalities directly under the Central government in China over the period from 2005 to 2018, this article investigates the impact of urban–rural income gap on economic growth under the background of urbanization. This article employs a threshold panel regression model that allows for urbanization-level thresholds and find strong evidence of the second half of the n-shaped relationship between urban–rural income gap and economic growth in our sample. Then, this article concludes the theoretical hypothesis that there is an N-shaped relationship between the urban–rural income gap and economic growth in the process of urbanization.

Suggested Citation

  • Wen Zhou & Huichao Zhang & Yihua Wei, 2023. "The threshold effect of urban–rural income gap on economic growth in urbanization: evidence from China," Applied Economics Letters, Taylor & Francis Journals, vol. 30(16), pages 2170-2173, September.
    • Handle: RePEc:taf:apeclt:v:30:y:2023:i:16:p:2170-2173
    DOI: 10.1080/13504851.2022.2094874
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