Urbanization and the Urban–Rural Income Gap in China: A Continuous Wavelet Coherency Analysis

Yiguo Chen, Peng Luo and Tsangyao Chang
Additional contact information
Peng Luo: School of Finance, Hubei University of Economics, No. 8 Yangqiaohu Road, Jiang-xia District, Wuhan 430205, China

Sustainability, 2020, vol. 12, issue 19, 1-14

Abstract: This study applies wavelet analysis to examine the relationship between the urbanization and the urban–rural income gap in 31 provinces in China over the period 1978–2019. We find three patterns of causality between urbanization and the urban–rural income gap. Empirical results show that urbanization does Granger-cause an urban–rural income gap, the urban–rural income gap does Granger-cause urbanization, and there exists a two-way causality between the urban–rural income gap and urbanization. Furthermore, these relationships mainly exist at high frequencies (short term). The results obtained by considering the resident population are more significant than those by the registered population. These results could help local governments develop fair policies for urban and rural income distribution in the process of urbanization of different provinces, promoting the coordinated development between urban and rural areas.

Keywords: urbanization; urban–rural income gap; wavelet coherency analysis (search for similar items in EconPapers)
JEL-codes: O13 Q Q0 Q2 Q3 Q5 Q56 (search for similar items in EconPapers)
Date: 2020
References: View references in EconPapers View complete reference list from CitEc
Citations: View citations in EconPapers (6)

Downloads: (external link)
https://www.mdpi.com/2071-1050/12/19/8261/pdf (application/pdf)
https://www.mdpi.com/2071-1050/12/19/8261/ (text/html)

Related works:
This item may be available elsewhere in EconPapers: Search for items with the same title.

Export reference: BibTeX RIS (EndNote, ProCite, RefMan) HTML/Text

Persistent link: https://EconPapers.repec.org/RePEc:gam:jsusta:v:12:y:2020:i:19:p:8261-:d:424751

Access Statistics for this article

Sustainability is currently edited by Ms. Alexandra Wu

More articles in Sustainability from MDPI
Bibliographic data for series maintained by MDPI Indexing Manager ().