Izvorni znanstveni članak
https://doi.org/10.1080/1331677X.2022.2164323
Can place-based policies reduce urban-rural income inequality? Evidence from China’s Old Revolutionary Development Program based on county-level data
Dan Pan
Peilin Fang
Shengdong Chen
Sažetak
Reducing urban-rural income inequality (URII) is a prerequisite in
promoting people’s welfare and realizing sustainable development
for many developing countries. However, virtually little is
understood about how place-based policies affect URII. To fill this
void, we utilize China’s Old Revolutionary Development Program
(ORDP)—a large-scale and novel type of place-based policy targeted
at undeveloped regions, as a natural experiment and use
the time-varying difference-in-differences (DID) model to evaluate
the effect of ORDP on URII and further investigate its potential
mechanisms and heterogeneity effects. The panel data covering
613 Chinese counties from 2010 to 2019 are used. Our results
show that ORDP can lead to an average of 11.2% decrease in
URII, but this effect takes a period to emerge. Mechanism analysis
presents that ORDP mitigates URII chiefly through government
intervention and financial development. Further heterogeneity
analysis casts light on the fact that ORDP exerts a greater role in
alleviating URII in old revolutionary counties that are located in
western and central China compared to those located in eastern
China. Additionally, the effect of ORDP on URII is greater in
undeveloped counties compared with developed counties. Our
findings provide enlightenment for the government in China and
other developing countries on how to mitigate URII through welldesigned
place-based policies.
Ključne riječi
Place-based policy; urbanrural income inequality; difference-in-difference method; Old Revolutionary Development Program; China
Hrčak ID:
319253
URI
Datum izdavanja:
9.1.2023.
Posjeta: 53 *