Urbanization, inclusive finance and urban-rural income gap

Chaohua He and Hongyan Du

Applied Economics Letters, 2022, vol. 29, issue 8, 755-759

Abstract: By exploring the economic data in 31 Chinese provinces during 2006–2018, this paper discovers that: (1) inclusive finance narrows the urban-rural income gap mainly by improving financial quality; (2) urbanization outweighs inclusive finance in reducing the urban-rural income gap; (3) urbanization and inclusive finance (exclusive of financial quality) weaken each other in bridging the urban-rural income gap. The findings are robust to the endogeneity problem.

Date: 2022
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DOI: 10.1080/13504851.2021.1885603

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