Income Diversification and Rural Consumption—Evidence from Chinese Provincial Panel Data

Xu, Tao

doi:10.3390/su9061014

Cited by 11 publications

(14 citation statements)

References 35 publications

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“…Meanwhile, an increasing number of rural residents moved to urban areas for greater job opportunities in the cities [29]. This resulted in these wealthy rural people diversifying their sources of income [30]. They also consumed more goods and services, on which indirect taxes are levied in urban areas.…”

Section: Discussionmentioning

confidence: 99%

Urban–rural disparities in healthcare financing: An analysis under China’s unified residents’ health insurance scheme

Zhou

Xiao²,

Chen

et al. 2020

Preprint

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Background: Few empirical studies have explored disparities in healthcare financing between urban and rural areas after China’s integration of health insurance schemes for residents. This study characterizes and compares disparities in healthcare financing distribution between urban and rural areas in China. Methods: Data were collected from 3918 individuals in 1800 urban households and 2609 individuals in 1200 rural households in 2018. We conducted tests of dominance on concentration curves of healthcare payments between urban and rural areas to compare urban–rural disparities in healthcare financing. Results: Disparities were found in healthcare financing equity of direct taxes, the Urban–Rural Residents’ Basic Medical Insurance (URRBMI), and out-of-pocket payments between urban and rural areas. Conclusions: Government subsidies on URRBMI need to be increasingly allocated to residents, especially in rural areas, providing sustainable pooled funding and continuation of URRBMI.

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Section: Discussionmentioning

confidence: 99%

Urban–rural disparities in healthcare financing: An analysis under China’s unified residents’ health insurance scheme

Zhou

Xiao²,

Chen

et al. 2020

Preprint

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“…(1) There were significant regional differences in the initial absolute level of residents' income and consumption among the provinces in the eastern, middle, and western zones, but the differences in velocity and acceleration of income and consumption growth among the three regions was not significant. The relevant literature has provided evidence that there existed disparity in absolute level of residents' income and consumption [49][50][51]. In fact, as a typical dual economic structure, the unbalanced development among different regions in China was the joint result of complex factors such as different industrial structures and distinct economic policies.…”

Section: Discussionmentioning

confidence: 99%

Spatial and Temporal Differences in the Relationships between Residents’ Income and Consumption in China: A Dynamic Analysis Using Functional Data Analysis

Wang

et al. 2018

Sustainability

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Income inequality and consumption gaps between urban and rural residents are prominent problems in the economic transition phase of China. Stimulating consumption, expanding domestic demand, and shifting development modes are inevitable choices for maintaining China's economy with healthy, stable, and endogenous growth, and the key premise is to clarify the coordination relationship between residents' income and consumption. In view of that, this study incorporates the spatial factors of three economic zones and time factors of China's economic transition into an analytical framework. By transforming discrete data into continuous functions, we compared the regional differences and temporal characteristics of the relationship between residents' income and consumption based on the two perspectives of static absolute level and dynamic growing speed. The result shows that: (1) There are significant differences in the absolute levels of original income and consumption among residents in the eastern, middle, and western regions of China, whereas the growing velocity and acceleration of income and consumption do not have significant regional differences.(2) There is a highly positive canonical correlation both in the absolute growth amount and dynamic growth potential of residents' income and consumption, whereas their nonlinear co-variation has obvious temporal characteristics, and the degree of canonical correlation has significant regional differences. Based on these conclusions, China's government need not consider regional factors too much when formulating and implementing policies to narrow residents' income gap and stimulating consumption in order to expand domestic demand, but should discriminate the specific coevolving period of income and consumption and take into account the difference in average consumption rate of different social strata.

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“…Adding to this theory, Dusenbery (1949) proposes the "relative income consumption theory", which considers the intrinsic correlation between consumers. According to this theory, consumers are influenced by their own consumption habits and the consumption level of their surroundings, and there are "ratchet effects" and "demonstration effects", which shift upward with society's increasing average income (Xu, 2017). These effects naturally affect rural residents, who are a unique segment of the entire population.…”

Section: Literature Reviewmentioning

confidence: 99%

The Impact of Diversified Income and Agricultural Tax Reform on the Consumption of Chinese Rural Residents

Zhou¹,

Luo²,

Nujoma³

2022

JEPF

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Income from different sources has become an important guarantee to sustain family life and normal expenses in China. How different sources of income affect farmers’ expenditure levels and how they have influenced farmers’ consumption since the agricultural tax reform in China since the 20th century has become a question worth exploring. Panel data from 2016 to 2020 are utilized to examine rural residents’ consumption expenditures and their sources of disposable income by region to analyze the impact of different income sources on farmers’ consumption and the correlation between income before and after agricultural tax reform, and finally conducts an analysis of future scenarios based on a time series model. The research results show that the elasticity of income from different sources on rural households’ per capita consumption expenditure is different, among which wage income is the most elastic, while household business income has a relatively small effect on consumption expenditure, but through data analysis we can find that agricultural tax reform has a significant and continuous promotion effect on rural households’ per capita consumption expenditure. The continuous cycle of agricultural tax reform is long, and the transmission chain through less tax payment, expanded reproduction, harvest, realization, and then consumption is long, thus there is a certain lag in tax reduction effect. Income from such sources in the first three years has a large impact on the current period data, while the first four and five years have a relatively small impact on current business income.

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Income Diversification and Rural Consumption—Evidence from Chinese Provincial Panel Data

Cited by 11 publications

References 35 publications

Urban–rural disparities in healthcare financing: An analysis under China’s unified residents’ health insurance scheme

Urban–rural disparities in healthcare financing: An analysis under China’s unified residents’ health insurance scheme

Spatial and Temporal Differences in the Relationships between Residents’ Income and Consumption in China: A Dynamic Analysis Using Functional Data Analysis

The Impact of Diversified Income and Agricultural Tax Reform on the Consumption of Chinese Rural Residents

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