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Urban--rural income disparities and development in a panel data set of China for the period from 1978 to 2006

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  • Hong-wei Zhang
  • Wei-guo Chen
  • Jie Zhang

Abstract

We examine the relationship between urban--rural income disparities and development in a panel data set of 30 provinces and regional subsets of China during the period of 1978 to 2006. There is an inverted-U relationship between the urban--rural income gap and per capita Gross Domestic Product (GDP). Financial development by scale widens the urban--rural income gap in all regional samples, while financial sector efficiency and rural bank loans may reduce it in some regions. Government spending raises the urban--rural income gap as well. We also examine the effects of urbanization, openness and education.

Suggested Citation

  • Hong-wei Zhang & Wei-guo Chen & Jie Zhang, 2012. "Urban--rural income disparities and development in a panel data set of China for the period from 1978 to 2006," Applied Economics, Taylor & Francis Journals, vol. 44(21), pages 2717-2728, July.
    • Handle: RePEc:taf:applec:44:y:2012:i:21:p:2717-2728
    DOI: 10.1080/00036846.2011.566197
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    References listed on IDEAS

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    1. Changteng Nie & Jianxiang Wan, 2023. "How Does Internet Infrastructure Construction Affect the Urban–Rural Income Gap? Evidence from a Quasi-Natural Experiment in China," Progress in Development Studies, , vol. 23(3), pages 317-337, July.
    2. Dongmei Guo & Shuning Kong & Xin Li & Yiming Liu & Weizeng Sun, 2025. "Urbanization and subjective well-being of native urban residents: evidence from the “new-type urbanization pilot policy” in China," The Annals of Regional Science, Springer;Western Regional Science Association, vol. 74(1), pages 1-27, March.
    3. Wenli Cheng & Yongzheng Wu, 2017. "Understanding the Kuznets Process—An Empirical Investigation of Income Inequality in China: 1978–2011," Social Indicators Research: An International and Interdisciplinary Journal for Quality-of-Life Measurement, Springer, vol. 134(2), pages 631-650, November.
    4. Xinxin MA & Sho KOMATSU, 2023. "Impact of E-commerce Development on Income Inequality: Evidence from rural China based on cross-county panel data," Discussion papers 23044, Research Institute of Economy, Trade and Industry (RIETI).
    5. Tang, Jianjun & Gong, Jiaowei & Ma, Wanglin & Rahut, Dil Bahadur, 2022. "Narrowing urban–rural income gap in China: The role of the targeted poverty alleviation program," Economic Analysis and Policy, Elsevier, vol. 75(C), pages 74-90.

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