2015Journal of Sanming UniversityRequires access

The Threshold Effect of Economic Development on the Urban-rural Income Gap

Lin Li-d

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Abstract

The threshold effect of economic development on the urban-rural income gap is studied by using 16 years provincial balanced panel data from 1998 to 2013. The results show that economic development will widen urban-rural income gap at a low level of economic development until it is more than 6.7751; eastern region shows typical inverted U shaped, economic development will narrow urban-rural income gap at a high level of economic development; economic development will widen urban-rural income gap at a high level of economic development in central region; economic development will widen urban-rural income gap in western region.

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The threshold effect of economic development on the urban-rural income gap is studied by using 16 years provincial balanced panel data from 1998 to 2013. The results show that economic development will widen urban-rural income gap at a low level of economic development until it is more than 6.7751; eastern region shows typical inverted U shaped, economic development will narrow urban-rural income gap at a high level of economic development; economic development will widen urban-rural income gap at a high level of economic development in central region; economic development will widen urban-rural income gap in western region.

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Available abstract

The threshold effect of economic development on the urban-rural income gap is studied by using 16 years provincial balanced panel data from 1998 to 2013. The results show that economic development will widen urban-rural income gap at a low level of economic development until it is more than 6.7751; eastern region shows typical inverted U shaped, economic development will narrow urban-rural income gap at a high level of economic development; economic development will widen urban-rural income gap at a high level of economic development in central region; economic development will widen urban-rural income gap in western region.

Key concepts: Economics, Economic growth, Rural area, Political science, Law

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