Volume: 8 Issue 12 [December 2025]

Article:The Impact of Trade Openness on the Income Gap between Urban and Rural Areas in China - From the Perspective of Spatial Econometrics

Author: Yusupov Ulugbek

Volume: December 2025, Volume 8, Issue 12

DOI: North American Academic Research, 8(12), 310-318. doi: https://doi.org/10.5281/zenodo.18069961

Abstract: This article uses provincial panel data from 2000 to 2021 in China to study the impact of trade openness on the urban-rural income gap from the perspective of spatial econometrics. Firstly, this article proposes a theoretical hypothesis: the impact of trade openness on the income gap between urban and rural residents is uncertain, while spatial correlation has a positive effect on the income gap between urban and rural residents. This article further verifies the above hypothesis and concludes that trade openness has increased the income gap between urban and rural residents in China, and spatial correlation also has a positive effect on the income gap between urban and rural residents. From the results of other control variables, the increase of regional economic strength, financial service industry level, regional industrial development, local government expenditure level and urban and rural fixed assets investment ratio will expand the income gap between urban and rural residents, but the increase of labor input level will narrow the income gap between urban and rural residents.

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