Impact of agricultural production trusteeship on the urban-rural income gap and its mechanism

Haixia Ren, Zhe Xian, Junya Chen, Wenjuan Zhang and Xiaohong Kang

Finance Research Letters, 2025, vol. 81, issue C

Abstract: On the bases of panel data of 30 provinces in China from 2012 to 2023, this study uses a two-way fixed-effect model to empirically explore the impact and mechanism of agricultural production trusteeship (APT) on the urban–rural income gap, and discusses the moderating role of rural human capital. Results show that trusteeship narrows the income gap, with stronger effects in central and western regions. The mechanism analysis reveals that trusteeship boosts agricultural total factor productivity (TFP) through technological progress and efficiency, ultimately narrowing the income gap. Additionally, rural human capital positively moderates this impact. Targeted countermeasures and suggestions are provided based on these findings.

Keywords: Agricultural production trusteeship; Income disparity; Total factor productivity; Human capital (search for similar items in EconPapers)
Date: 2025
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Persistent link: https://EconPapers.repec.org/RePEc:eee:finlet:v:81:y:2025:i:c:s1544612325008025

DOI: 10.1016/j.frl.2025.107543

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