The nonlinear impact of tourism development on urban-rural income gap in poor areas

Abstract

Examining the impact of tourism development on urban- rural income gap is of great significance for coordinating regional development and promoting social equity. This study took the state- level poor counties in Southwest China as the research object and used threshold regression model to explore the nonlinear impact of tourism development on the urban- rural income gap in these counties from 2010 to 2018. The data were obtained from statistical yearbooks and statistical bulletins. The results show that: (1) During the study period, tourism development can significantly narrow the urban- rural income gap in poor counties. However, there is a single threshold effect on the reduction of the income gap. With the continuous improvement of tourism development level, the positive impact of tourism on the urban- rural income gap decreases significantly. (2) In the early stage of tourism development, the increasing effect of tourism on the per capita income of rural residents is bigger than that of urban residents. When tourism develops to a certain extent, however, urban residents will benefit more. (3) Government finance, education, and financial development are important factors that adjust the relationship between tourism development and urban-rural income gap in Southwest China. There are regional heterogeneities in the effect of tourism development on urban- rural income gap and its influencing factors in the region. Government financial expenditure, industrial structure, and economic development level are the main factors affecting the relationship between tourism development and urban- rural income gap in Chongqing Municipality and Yunnan and Sichuan provinces, respectively, and the relationship between tourism development level and urban-rural income gap in Sichuan is affected by the comprehensive effects of economic development, industrial structure, government finance, and other factors.