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Spatial spillover effect of green finance on urban-rural income gap

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  • Yong Li
  • Yifan Shen
  • Yufei Chen

Abstract

This paper constructs a spatial panel data model and establishes the Green Finance Index of China’s provinces with the entropy value method to empirically test the impact of green finance on China’s urban-rural income gap. The results of the study show that green finance not only reduces the local urban-rural income gap but also has an obvious inhibitory effect on the urban-rural income gap in the surrounding areas. In terms of regional analysis, green finance has limited inhibitory effects in developed regions and significant inhibitory effects in developing regions.

Suggested Citation

  • Yong Li & Yifan Shen & Yufei Chen, 2025. "Spatial spillover effect of green finance on urban-rural income gap," Applied Economics Letters, Taylor & Francis Journals, vol. 32(13), pages 1835-1842, July.
    • Handle: RePEc:taf:apeclt:v:32:y:2025:i:13:p:1835-1842
    DOI: 10.1080/13504851.2024.2331249
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