Analysis of the Economic Growth Influence on the Urban-Rural Income Gap: An Empirical Study Based on 31 Provincial Regions

Jingwen Cui

doi:10.54691/bcpbm.v49i.5437

Authors

Jingwen Cui

DOI:

https://doi.org/10.54691/bcpbm.v49i.5437

Keywords:

Economic Growth; Income Gap; Common Prosperity

Abstract

The relationship between economic growth and the urban-rural income gap is intertwined with the formulation of economic development policies. It is the goal of every country to control the urban-rural income gap within a reasonable range while ensuring economic growth. Studying how economic growth influences the urban-rural income gap, this paper explores its influence direction and mechanism by using the two-way fixed effect model. It is found that economic growth will narrow the urban-rural income gap by improving local spiritual and cultural construction and fiscal expenditure. Finally, the paper puts forward some policy suggestions that we should strengthen the governmental guiding role, actively carry out the rural spiritual and cultural construction, and boost fiscal expenditure to help farmers.

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