Research on the impact of high-speed railway on urban-rural income gap in China

Mengxin Wang, Lang Li, Kaiming Zhen, Hanyong Lan

Article ID: 5125
Vol 8, Issue 7, 2024

VIEWS - 147 (Abstract) 72 (PDF)

Abstract


Using data from 31 provinces, municipalities, and autonomous regions in mainland China from 2006 to 2019, we employ a double difference (DID) model and a spatial double difference (SDID) model to estimate the impact of the High-speed Railway (HSR) on the income gap between urban and rural residents, as well as its spatial spillover effects. Our research reveals several key findings. Firstly, the introduction of high-speed railways helps to narrow the income gap between urban and rural residents within local areas, but its spatial effects can lead to an increase in the income gap in neighboring provinces. Secondly, from a spatial perspective, intermediate variables such as industrial structure, education, science and technology, and foreign trade can also contribute to balancing the income gap between urban and rural residents, although the impact of population mobility is not significant. Thirdly, further analysis of the spatial effects demonstrates that education plays a significant role in balancing the income gap both within the local province and neighboring provinces. Additionally, adjustments in industrial structure, advancements in science and technology, and foreign trade have stronger spillover effects in reducing the income gap among neighboring provinces compared to their impact at a local level.


Keywords


high-speed railways; income gap between urban and rural residents; double difference model (DID); spatial double difference model (SDID)

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DOI: https://doi.org/10.24294/jipd.v8i7.5125

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