Transport infrastructure and urban-rural income disparity: A municipal-level analysis in China

Abstract

Although the effects of transport infrastructure on regional development have been widely discussed, the relationship between transport infrastructure and urban–rural income disparities has scarcely been examined. This study provides new evidence of those disparities by looking at 227 prefectural-level cities in China in 2016. We found that national, provincial and municipal roads played a positive role in narrowing the urban–rural income gap by facilitating rural labour mobility. The high coefficient of provincial and municipal roads indicates that they provide access to local and regional job markets for migrant farmers. The impact of roads is most remarkable in China's southwestern and middle regions, demonstrating that road infrastructure is more important for rural residents in these regions to increase their income. The least significant impact of road infrastructure was found in the northeast region, where road infrastructure is not the main restriction factor for its development. Policymakers should consider the impact of road infrastructure in different regions to reduce the urban–rural income gap.