Development of Platform Economy and Urban–Rural Income Gap: Theoretical Deductions and Empirical Analyses

Abstract

Against the historical background of the burgeoning platform economy and the promotion of common prosperity, this paper focuses on the impact of the development of the platform economy on the urban–rural income gap. Theoretical mechanism analyses are conducted from three aspects such as nonlinear action of the platform economy on the urban–rural income gap, the rural human capital level-based moderating effect, and the spatial spillover effect. Moreover, empirical analyses are carried out using the threshold model, interaction model, and spatial lag model in turn with panel data of 31 provinces in China from 2013 to 2020. The results of the study show that there is a significant double threshold effect of the development of the platform economy on the urban–rural income gap. The initial development of the platform economy can improve urban–rural income inequality, and the scale effect of the platform will further contribute to the reduction in the urban–rural income gap, but the expansion of market share and the deepening of monopoly will have a suppressive effect on the urban–rural equilibrium. There is a moderating effect of rural human capital in the platform economy in reducing urban–rural income inequality. The increase in the level of rural human capital will enhance the driving effect of the platform economy on the reduction in the rural–urban income gap. There are spatial spillover effects for the impacts of the platform economy on the urban–rural income gap and it positively promotes the coordinated development of urban and rural areas in neighboring provinces. Based on the above results, this paper makes policy proposals from three aspects such as perfecting the system and standard of the platform, improving the rural human capital level, and optimizing platform-based regional cooperation.

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