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Although much of the recent research has explored the relationship between domestic tourism and income inequality among regions, provinces, and cities, few studies have examined the impact of domestic tourism on income inequality between urban and rural areas within a region. This paper uses a panel dataset covering China’s 31 provinces for 21 years to investigate the spatial spillover effect of domestic tourism on urban-rural income inequality. An increase in domestic tourism revenue in neighboring provinces leads to a reduction in the local province’s urban-rural income inequality. Innovatively, we decompose domestic tourism revenue and consider the circumstances in different provinces. An increase in the number of neighboring provinces’ domestic tourists’ arrival decreases the local province’s urban-rural income inequality in western provinces but increases the inequality in eastern provinces; the effect is insignificant in central provinces. In order to improve urban-rural income inequality by attracting domestic tourists, this study suggests a collaborative strategy for the western region, a low-priority strategy for the central region, and a mitigation strategy for the eastern region.
Zhixin Zeng; Xiaojun Wang. Spatial Effects of Domestic Tourism on Urban-Rural Income Inequality. Sustainability 2021, 13, 9394 .
AMA StyleZhixin Zeng, Xiaojun Wang. Spatial Effects of Domestic Tourism on Urban-Rural Income Inequality. Sustainability. 2021; 13 (16):9394.
Chicago/Turabian StyleZhixin Zeng; Xiaojun Wang. 2021. "Spatial Effects of Domestic Tourism on Urban-Rural Income Inequality." Sustainability 13, no. 16: 9394.
Most studies examining the relationship between domestic tourism and urban-rural income inequality have found a positive correlation. However, the causal link between them is difficult to establish due to many potential sources of endogeneity. By including World Heritage Site (henceforth WHS) designation in the set of instruments, this paper estimates the causal effects of domestic tourism on urban-rural income inequality within 31 China’s provinces from 1998 to 2018. Our results show that developing domestic tourism can reduce urban-rural income inequality by raising income of rural residents more than twice as much as that of urban residents. Specifically, a 10% increase in domestic tourism earnings could increase the average disposable income of urban residents by 0.35% and that of rural residents by 0.94%, resulting in a 0.59% reduction in the urban-rural income ratio. According to channels analysis, domestic tourism enhances the disposable income of rural residents mainly through raising household operating income from agriculture, manufacturing, and services.
Zhixin Zeng; Xiaojun Wang. Effects of Domestic Tourism on Urban-Rural Income Inequality: Evidence from China. Sustainability 2021, 13, 9009 .
AMA StyleZhixin Zeng, Xiaojun Wang. Effects of Domestic Tourism on Urban-Rural Income Inequality: Evidence from China. Sustainability. 2021; 13 (16):9009.
Chicago/Turabian StyleZhixin Zeng; Xiaojun Wang. 2021. "Effects of Domestic Tourism on Urban-Rural Income Inequality: Evidence from China." Sustainability 13, no. 16: 9009.