Analysis on Regional Income Gap and Spatial Convergence in China’s Rural Collective Economy

Chen Xueyuan (), Zhou Yuqing, Wang Lei and Sun Mengjie
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Chen Xueyuan: Associate Researcher, Beijing Rural Economy Research Center Chaoyang China
Zhou Yuqing: Agricultrural Development Bank of China Chaoyang China
Wang Lei: Associate Researcher, Institute of Industrial Economics of CASS Chaoyang China
Sun Mengjie: Doctor of Management, Beijing Rural Economy Research Center Chaoyang China

China Finance and Economic Review, 2021, vol. 10, issue 4, 51-76

Abstract: This paper empirically demonstrates a significant correlation between rural collective economic development, farmers’ income and urban-rural relative income gap. With 2009–2018 descriptive statistics on growth characteristics and regional development of rural collective economy in China, the regional disparity, source structure and development profile of collective economic income are measured, and an analysis on the spatial convergence of rural collective economy is conducted from multiple dimensions. It finds that: Firstly, while China witnesses rural collective economic income rapidly grows, regional disparities have been failing to be moderated. Secondly, rural collective economic income gap in China has not significantly narrowed over a decade. It is mainly due to the inter-group differences in geographical locations. The income gap is further widening in the eastern region and shrinking in the central and western regions. Thirdly, capital accumulation prominently contributes to the convergence of collective economy in the eastern region, while technical indicators such as information computerization play significant role to the convergence of other regions. From rate and period of convergence, it takes about 22—30 years for backward provinces to catch up with leading provinces. After variables, such as capital accumulation and information computerization, are controlled, the period of convergence shortens to 20—24 years. Fourthly, rural collective economic income in China has already showed a spatial club convergence of low-level equilibrium trap.

Keywords: collective economic income; regional disparity; spatial convergence; spatial club convergence (search for similar items in EconPapers)
Date: 2021
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Persistent link: https://EconPapers.repec.org/RePEc:bpj:cferev:v:10:y:2021:i:4:p:51-76:n:5

DOI: 10.1515/cfer-2021-0022

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