Rural Income Inequality Research Articles

Tourism and rural income inequality: empirical evidence for China

ABSTRACT This article uses the mediating effect model to explore tourism’s impact on rural income inequality and the underlying mechanism. For the first time, this article calculates the province-level rural Gini coefficients and Theil indexes to measure rural income inequality based on the income survey data of rural China. The results show that total tourism, domestic tourism and inbound tourism are all driving forces for increasing rural income inequality. The effects of total tourism and domestic tourism are statistically significant. Moreover, tourism significantly influences rural development represented by employment, education, income and consumption. Rural development significantly mediates tourism’s effects on rural income inequality. The effects of tourism on rural income inequality vary significantly across different rural development levels. This article also proposes a series of targeted policy implications, which can better serve China's sustainable tourism and rural development.

INCOME DISTRIBUTION OF RURAL HOUSEHOLDS IN MEXICO

Despite the efforts to reduce poverty in rural municipalities income inequality persists in Mexico. This study presents an analysis on rural household income distribution in the country, since it is argued that conditional federal transfers fail on improving income distribution among rural households. The hypothesis stated that, because of local public goods are also part of individual budget constraints, it is rational to think that an expansion in the provision of local public goods will increase total income and, if such public goods are financed with conditional grants that target low-income groups, it is expected that income inequality may decrease. Thus, the objective was to classify rural municipalities in order to observe which among them have benefited from federal grants and those that did not, finding the reasons why assuming grants are accepted as an instrument contributing to reduce poverty and income inequality in recent years. Each group was analysed as a cluster to observe the effect of federal transfers on rural household income distribution. Main results showed that municipalities with rural low income-inequality and better economic development indicators improve income distribution when obtaining unconditional grants. This means that, in such cases, those transfers designed to reduce poverty also reduce rural income inequality. But that was not the case for the high income-inequality groups, where conditional grants did not have any effect on inequality and, in some cases, inequality increased. For the rural high income-inequality group, unconditional grants showed not to have a positive effect on reducing inequality. The clustering and regression analyses revealed large heterogeneity in the rural areas in terms of income and economic development.

The nonlinear effects of tourism on rural income inequality and urban–rural income inequality: Evidence from China

Tourism’s relationship with income inequality is a hot spot in the academic community; however, few studies focus on how tourism shapes rural income inequality, despite its significant role in rural poverty alleviation. This article investigates the nonlinear effects of tourism on urban–rural income inequality and rural income inequality based on data from China’s provincial regions over the period 1995–2018, using the dynamic panel data approach. This study further examines the regional heterogeneity of such effects. The results demonstrate that for the national sample, there exists a significant cubic curve relationship between domestic tourism and rural income inequality. However, inbound tourism’s relationship with rural income inequality is not significant. Besides, there exists an N-shaped Kuznets curve between domestic or inbound tourism and urban–rural income inequality. The effects of tourism on rural income inequality and urban–rural income inequality vary significantly across the eastern, middle, and western regions. From east to middle to west, the significance of inbound tourism’s influence on income inequality decreases gradually. This study also highlights some critical theoretical and practical implications. Unlike prior studies, this article builds the first comprehensive research framework consisting of tourism, rural income inequality, and urban–rural income inequality.

Evaluating mutual impacts of Agricultural Growth and Inequality in Iran's Rural area divided to Provinces with Amenity and Deprived: Simultaneous Equations of Panel Data Approach

Purpose- Income distribution inequity in low income societies spreads poverty faster therefore it is essential to indicate the relation between economic growth and income distribution in low income societies like rural societies which gain income through agricultural activities. On the other hand, recent studies show that societies amenity or deprivation is effective on the relation between growth and income distribution. So the aim of this study is to indicate the relation between rural income distribution and Iran agricultural sector growth dividing to regions with amenity or deprived. Design/methodology/approach - Due to economic literature income distribution and economic growth has interactional effect on each other and the relation between them is different in regions with amenity and deprived. To explain the relation between rural income distribution and agricultural sector growth in this study two equations are introduced, the first equation analyzes the effective factors on agricultural sector growth and the second equation examine the factors determining rural income inequality. These equations are estimated by provincial data divided to regions with amenity and deprived during 2008-2016 and simultaneous equations approach of panel data is used. Finding-The results show that, in low amenity and deprived provinces agricultural sector growth reduces the inequality while agricultural sector growth has no significant effect on inequality in provinces with amenity. Also inequality increase lead to economic growth in deprived regions, but in regions with amenity the effect of inequality on growth is not significant. Besides, the results of estimation imply that government's expenditure in provinces increase rural income inequality and development expenditure only in deprived and low amenity provinces cause rural income inequality decrease and in other rural is not significant on inequality index. Practical implications- Based on the results of this study and in order to reduce rural income inequality and the growth of agricultural sector, it is necessary to consider the distribution of public facilities and infrastructure in order to enjoy deprived and low amenity rural regions.

How Does Income Inequality Influence Environmental Regulation in the Context of Corruption? A Panel Threshold Analysis Based on Chinese Provincial Data.

The question of how the income inequality of residents affects the level of environmental regulation in the context of official corruption was the core research issue of this study. We analyzed this problem using the panel threshold regression model from 26 provinces in China from 1995 to 2017. We found that when there is no official corruption, the widening of the residents’ income inequality promotes stricter environmental regulations; when the corruption problem is serious, the expansion of the residents’ income inequality leads to the decline in environmental standards; that is, the impact of residents’ income inequality on environmental regulation has a threshold effect due to corruption. In addition, the threshold effect due to corruption of all residents’ income inequality on environmental regulation is mainly generated by the urban residents’ income inequality and the urban–rural income inequality. This paper contributes to the literature that concentrates on the relationship between income inequality and environmental regulation, and shows that corruption is a key factor that can deeply influence that relationship. The research conclusion shows that increasing anti-corruption efforts can not only maintain national political stability, social fairness, and justice, but also be a powerful measure for environmental pollution governance.

Tenure regimes and remoteness: When does forest income reduce poverty and inequality? A case study from the Peruvian Amazon

Common property in Latin America is mostly managed by indigenous populations, which are in most of the cases located in remote settlements. Tenure regimes and remoteness are considered to influence the amount of income and type of products extracted from forests. Most of the previous studies could not assess to what extent the contribution of forests to livelihoods is mediated by either tenure regimes or remoteness. Current research attempts to fill this gap in the literature by focusing on the economic contribution of forest products to rural livelihoods under different tenure regimes, common and individual property, and levels of remoteness. We collected data from four hundred households located in fifty villages in lowland forest areas in the Loreto Region, in Peru. We used the Foster-Greer-Thorbecke (FGT) index of poverty and the Gini coefficient to assess rural poverty and income inequality. The contribution of forest resources to total income and (in)equality is compared across different tenure regimes and different levels of remoteness. We provide evidence that forests are an important income source for the poorest households and this contribution is more pronounced among households living in villages under communal tenure regimes and remote areas. Forest income is significantly and negatively correlated with inequality under communal tenure regimes, but such a trend is not found in regions under private tenure. Game meat and non-timber forest products are the most important subsistence income sources for households living in remote villages and villages under common property regimes. This study illustrates that forests under common tenure are not only important from a conservation point of view, but also from a livelihood point of view, and this should be considered in both poverty policies and forest conservation and utilization policies.

Can agglomeration of producer services reduce urban–rural income inequality? The case of China

AbstractIn this study, we construct a theoretical model and investigate the impact of agglomeration of producer services (APS) on urban–rural income inequality in China. The mediating effects are explored. Results indicate that the growth of APS can not only narrow China's urban–rural income gap directly, but also have an indirect negative effect on income inequality by promoting urbanisation evolution and human capital accumulation. Furthermore, the agglomeration of six sub‐industries is conducive to reducing the income gap. Among them, the agglomeration of the traffic, transport, storage and post has the greatest effect, while the effect of information transfer, computer services and software agglomeration is not significant. In addition, the results of regional heterogeneity show that only in the low APS region can APS and income inequality show bidirectional causality.

Livestock production and income inequality in rural Vietnam

We examine the factors affecting livestock production by using a two-part fixed effects model and assess the contribution of livestock production in reducing income inequality by using the Gini decomposition method. We use panel household data from four rural surveys in three provinces of Vietnam. Our results show that (1) livestock production can bring either positive or negative income; (2) positive livestock income contributes about 11% to annual household income, but this figure is only 7% if negative livestock income is included; (3) positive livestock income reduces rural income inequality by about 3.3%, but this figure becomes 1.2% if negative livestock income is included. We suggest that enhancing access to credits, promoting rural education and road conditions, and empowering rural households to better cope with demographic shocks reduce negative livestock income and consequently improve income equality. In addition, priorities should be given to the development of large livestock.

Impacts of Education and Environmental Sustainability on Rural Income Inequality in Indonesia

Income inequality may hinder rural development and education is seen an important tool in rural development processes as well as it become an effective way in reducing rural income inequality. Human capital theory suggests that higher education can increase income, and it will decrease income inequality. The first objective of this study is to examine the effect of education on rural income inequality in Indonesia. This study also examines the relationship between environmental deterioration and rural income inequality. Studies about the impact of higher levels of inequality on environmental deterioration are not new, but the opposite studies are rare. Therefore, the second objective of this study is to examine the effect of environmental deterioration on rural income inequality in Indonesia. This study applies panel data from 32 provinces in Indonesia during 2012 to 2018. The results show that higher education resulting in lower rural income inequality in Indonesia. Furthermore, the finding also shows that the efforts to reduce environmental deterioration resulting in lower rural income inequality in Indonesia. This study suggests that it is vital to improve education level and to apply nature-friendly approaches to reduce income gaps in rural areas so the rural development goals can be achieved.

A multilevel analysis of the contextual effects in distance education outcomes during COVID-19

The COVID-19 outbreak has forced countries to take extensive measures aimed at minimizing human contact. In this crisis period, distance education has played a crucial role in ensuring continuous learning. However, not all locations have had the same maturity level regarding infrastructure availability, and the city-level heterogeneity in socioeconomic structures might have impeded equal access to distance education. This paper focuses on the contextual dimension of distance education by a comparative approach between in person and distance education outcomes in Turkey. By a multilevel modelling approach, student outcomes are examined against a set of student-level and city-level determinants of academic success during the COVID-19 period compared to the same academic semester in the previous year. The findings support previous studies, discussing the long-term contextual effects on student outcomes and show that the digital divide between the rural and urban areas and income inequality are the main drivers of city-level variation in students' success during the pandemic.

Rural-urban migration with remittances and welfare analysis

Given the growing importance of rural-urban migration with remittances to rural development and urban income inequality, this paper proposes a theoretical model to investigate unskilled migration with remittances and the relevant welfare implications. Migrants remit part of their wage incomes to support their families of origin out of distinct motivations. The adequate explanation for this behavior may be “enlightened self-interest.” Alongside that, we introduce the mental cost of migration, which means that both migrants and remaining members suffer when migrants leave their families and generate the utility loss. We then construct a modified Melitz model with these ingredients to examine the urbanization process and corresponding welfare issues. The results show that when the remittance increases, it will enlarge the inequality between entrepreneurs and migrant workers. Moreover, when the trade cost is relatively small, the average utility level of migrant households is increasing in the remittance rate. Finally, we employ a numerical approach to simulate the optimal remittance rate and compare the results of different scenarios.

Rural attachment and income inequality in rural communities of Nigeria under the threat of cattle raiding

While migration has long been recognised as a strategy of poverty reduction and income enhancement, the inequality that could arise among rural migrants due to their perceived differences in rural attachment has not been systematically addressed. Using a new index of rural attachment constructed with various components of human and non-human factors, this study reveals that emigrated low-income households were more attached to rural areas than richer households. Moreover, violent conflicts, particularly cattle rustling, exert a strong negative impact on household income and the impact cuts across all households with different levels of income. Thus, it can be argued that conflict in resource-scarce communities could exacerbate the pre-existing rural–urban income inequalities.

Does Village Fund Transfer Address the Issue of Inequality and Poverty? A Lesson from Indonesia

This study investigates the impact of fiscal transfer, specifically the Village Fund Transfer, on rural income inequality and rural poverty. Studies on fiscal transfer offers contrasting outcomes, some argues that fiscal transfer suppresses wealth disparity, while others argue that it tends to widen disparity. This study employs descriptive analysis in estimating the elasticity of income inequality and poverty rate before and after the Village Fund Transfer. It develops multiple regressions model on panel datasets of 33 provinces in Indonesia before and after the implementation of Village Fund Transfer. This study suggests that the elasticity of income inequality is higher after the implementation of village fund transfer. Rural poverty tends to decline annually, however, the elasticity changes is lower after the implementation of village fund transfer. Furthermore, this study suggests that village fund transfer is insignificant in coping with the issue of income inequality, while education and the level of labor productivity of agricultural sector appears to be the determinant factor in tackling the issue of income inequality in the rural areas. This study further reveals the significance of village fund transfer in suppressing the rural poverty rate. This study also highlights the significance of human resources quality and agricultural sector in reducing poverty rate in rural areas.

Measurement of the Income Difference of Rural Residents in Peri-Urbanized Areas and Its Influencing Factors: Evidence from Nanhai, Foshan, China

This study supplements research on peri-urbanized areas by introducing a quantitative analysis of rural income inequality, with particular attention being paid to geographical causes. It also contributes a community/village-scale case to the current knowledge of the quantitative analysis of rural income inequality, which is mainly based on the county, municipal and higher levels. A typical peri-urbanized area in the Pearl River Delta—namely, Nanhai District, Foshan City—was considered as an empirical case. Based on 10-year continuous data, from 2007 to 2016, we first analyzed the distribution and spatial autocorrelation between per-capita share dividend income (PCSDI) and per-capita net income (PCNI). Then, we used a Geographically Weighted Regression (GWR) model to explore the strength and direction of the relationship between PCSDI and the five selected driving factors. The results show that, during the study period, the rural income difference of PCSDI in Nanhai generally narrowed, whereas the income difference of PCSDI generally expanded, and the spatial distribution of PCNI was more unequal than that of the PCSDI. The GWR model shows that geo-location (GL) has the strongest impact on PCSDI, followed by the per-capita area of state-owned land (PCASOL); the density of the road coverage (DRC) and the density of the registered population (DRP) have the least effect on PCSDI. Except for the per-capita area of collective constructive land (PCACCL), which is a global variable, the correlation between the four other factors and PCSDI is geographically uneven.

Non-timber forest incomes and economic welfare in the South-West region of Cameroon: The incidence of rural income inequality

Abstract. With the aim of answering the question whether or not Non-Timber Forest Products can contribute in reducing rural income inequality in the South-West region of Cameroon, the study used primary data collected from a survey on 408 rural household heads. The Data was collected using a structured questionnaire. We adopted three different methodologies – The Gini Coefficient, The Lorenz curve, and The Income Decomposition by income sources to obtain identical results. The results revealed that incomes from non-timber forest products reduces rural income inequality in the rural parts of the region significantly, and occupy an important position amongst the different income sources which were investigated. We therefore recommend improved value-added for Non-Timber Forest Products through processing. A better management of the forest in general and the forest resources in particular will ensure improved benefits to the community as a whole especially in the areas of total income and income inequality.. Keywords. Economic Welfare, Rural Income Inequality, Non-Timber Forest Incomes, Gini Coefficient Income Decomposition by income sources and Cameroon. JEL. O11, E20, Q13, C30.

Rural Livelihood Diversification in Bangladesh: Effect on Household Poverty and Inequality

The pervasiveness of poverty continues to be a daunting challenge for Bangladesh. This study attempts to examine the effect of different livelihood diversification on rural household poverty and income inequality. A panel dataset, which is used in this study, was collected in the three different years (1988, 2000 and 2008) from 62 villages across 57 districts of Bangladesh. Besides, 153 households from three districts of Bangladesh were also randomly selected as primary data. Multidimensional poverty index (MPI) was used to measure poverty whereas Gini coefficients and decomposition of Gini coefficients were used to measure inequality and to identify marginal effects of certain livelihood income source on total inequality. The results reveal that diversifying livelihood through income source changes has an impact on the poverty level and inequality among rural households. Following these changes, the overall poverty situation has been improving and income distribution has been worsening over the years. Households drastically reduce their poverty by diversifying their livelihood from only agriculture to part-time farming. Among different non-farm income sources, only self-employment has a positive contribution in decreasing income inequality since 2000. Incomes from migration and wage-employment widen income inequality in rural Bangladesh. Therefore, policy options should strive to expand rural industry and scope of self-employment in the rural areas along with agricultural sector development.

Clustering, growth and inequality in China

Abstract This study examines the effects of China’s industrial clusters on regional economic growth and urban–rural income inequality within a region. A density-based index (DBI) is developed to capture the unique features of cluster development in China. From a county-level DBI panel data constructed based on firm- and county-level datasets, we find that clusters enhance local economic growth substantially. Moreover, the existence of entrepreneurial clusters (clusters mainly consist of nonstate-owned firms) helps to reduce local urban–rural income inequality by increasing the income of local rural residents. We also find that the clustering effects on growth and reduction of inequality are less significant in more urbanized regions or megacities. Identification issues are carefully addressed by deploying two-stage estimations with instrumental variables and Granger test.

Poverty, Income Inequality and Growth in Bangladesh: Revisited Karl-Marx

This study tries to find the relationship among poverty inequality and growth. It also tries to connect the Karl Marx’s thoughts on functional income distribution and inequality in capitalism. Using the Household Income and Expenditure Survey of 2010 and 2016 this study attempt to figure out the relationship among them. The incidence of poverty in Bangladesh is one of topmost in this globe; about 25% of the population is living under poverty lines and 12.3% of its population is living under the extreme poverty line. The major finding of this study is poverty has reduced significantly from 2000 to 2016, which is more than 100% but in recent time poverty reduction has slowed down. Despite the accelerating economic growth, the income inequality also increasing where the rate of urban inequality exceed the rural income inequality. Slower and unequal household consumption growth makes sloth the rate of poverty reduction. Average annual consumption fell from 1.8% to 1.4% from 2010 to 2016 and poorer households experienced slower consumption growth compared to richer households.

Rural household income distribution and inequality in China: Effects of payments for ecosystem services policies and other factors

In the late 1990s, China initiated the Conversion of Croplands to Forest Program (CCFP) and the Ecological Welfare Forest Program (EWFP) based on the Payments for Ecosystem Services (PES) principle. Positive socioeconomic outcomes of the programs are essential for the long-term success of eco-environment conservation. However, there is lack of understanding of their longer-term (over 10 years) impacts on rural livelihoods. In this paper, we examine income distribution and inequality of rural households under CCFP and EWFP in rural Anhui, China after 12 years of program implementation. Results show that CCFP-participating households have higher income inequality than non-participants, while the EWFP does not have a significant effect. Local off-farm work and out-migration with remittances are the two principal income sources and both add to inequality. A regression-based decomposition of inequality shows that the CCFP indirectly alters livelihoods by increasing out-migration with remittances, but it also adds to inequality from shifting livelihoods to non-agricultural activities. Meanwhile, EWFP payments positively affect agricultural incomes and contribute 16% to agricultural income inequality. Finally, human capital, natural capital and physical capital all play important roles in generating income and inequality, but the factors affecting inequality from agricultural and non-agricultural activities are different.

Financial Inclusion and Urban–Rural Income Inequality: Long-Run and Short-Run Relationships

ABSTRACTUsing Chinese provincial data over the period 1985–2013 and conducting the panel cointegration methods, we find that financial inclusion narrows the urban–rural income inequality in the long run, but expands it in the short run. These results can also be observed when sub-dimensional indexes of financial inclusion are tested, including financial accessibility and availability. Moreover, we find that the speed of financial networks’ expansion and the education disparity between rural and urban areas are two possible reasons to explain the short-run increase.