Which is important?—the economy or people’s livelihood

Jun Han and Shicheng Jiang

Economic Research-Ekonomska Istraživanja, 2023, vol. 36, issue 3, 2150256

Abstract: The adjustment of industrial structure not only is an important driving force of economic development but also affects the income gap between urban and rural areas through the effect of resource allocation. Based on this, this article constructs an index of the adjustment range and adjustment quality of the industrial structure. The results show that the adjustment of industrial structure in the eastern region has significantly promoted economic catch-up but inhibited the widening of the income gap between urban and rural areas. The adjustment range and quality of industrial structure in central China has promoted economic catch-up, but the adjustment quality has inhibited economic catch-up. In the western region, the adjustment range and quality of the industrial structure have restrained the regional economy from catching up and expanding the income gap between urban and rural areas. In the eastern and central regions, economic catch-up and the narrowing of the urban-rural income gap significantly promote each other, while in the western region, economic catch-up and the urban-rural income gap significantly promote each other. This shows that both economic development and people’s livelihood improvement can be achieved in economically developed areas but not in underdeveloped areas.

Date: 2023
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DOI: 10.1080/1331677X.2022.2150256

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