Abstract

By using the data of 31615 famer from 757 administrative villages within 7 provinces in the minority regions of the Midwest, we found that the administrative expenditure has a significant positive impact on the rural residents’ income gap. Meanwhile, fiscal expenditures on agriculture, science, education, culture, public health, and the degree of democratic development have a significant negative impact on the rural residents’ income gap. Moreover, democratization strengthens the influence of fiscal expenditure on the rural residents’ income gap. Therefore, we present four proposals, including strengthening grass-roots administrative reform, increasing the subsidies to agriculture, perfecting the infrastructure, and promoting the reform of democratization.

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