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Impact of Industrialization on Household Income in Rural China, 1988-2018

Author

Listed:
  • Yulu Chen

    (Sichuan Provincial Investment Group Company Limited, Sichuan Province, China)

  • Qingjie Xia

    (School of Economics, Peking University, Beijing, China)

  • Shi Li

    (School of Public Affairs, Zhejiang University, Zhejiang Province, China)

Abstract

This paper uses China Household Income Project rural household survey data spanning 30 years (1988-2018) to study the impact of China’s industrialization on rural household income. In the semiparametric regression model, we use the rural households’ distance to the manufacturing hub to analyze the spillover effect of industrialization on their income and the spatial attenuation. The results show that the income gap between rural households in Guangdong and other provinces increased from 1988 to 2002, but continuously decreased from 2002 to 2018; the rural households’ distance to the Pearl River Delta or the Yangtze River Delta, the two international manufacturing hubs, has a significant impact on their income, which has been increasing from 1988 to 1995, but has been decreasing since the new century. On the contrary, the influence of the rural households’ distance to the provincial capital on their income has been increasing since the new century.

Suggested Citation

  • Yulu Chen & Qingjie Xia & Shi Li, 2023. "Impact of Industrialization on Household Income in Rural China, 1988-2018," Journal of Economic Statistics, Anser Press, vol. 1(2), pages 14-43, August.
    • Handle: RePEc:bba:j00005:v:1:y:2023:i:2:p:14-43:d:187
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    References listed on IDEAS

    as
    1. Möllers, Judith & Buchenrieder, Gertrud, 2011. "Effects of Rural Non-farm Employment on Household Welfare and Income Distribution of Small Farms in Croatia," Quarterly Journal of International Agriculture, Humboldt-Universitaat zu Berlin, vol. 50(3), pages 1-19.
    2. Masahisa Fujita & Paul Krugman & Anthony J. Venables, 2001. "The Spatial Economy: Cities, Regions, and International Trade," MIT Press Books, The MIT Press, edition 1, volume 1, number 0262561476, April.
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