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Urban–rural Integration and Poverty: Different Roles of Urban–rural Integration in Reducing Rural and Urban Poverty in China

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Abstract

Poverty is a common problem faced by all countries. Breaking the restrictions on urban–rural development imposed by the dual urban–rural system, China has greatly succeeded in eradicating absolute poverty, which has important reference significance for other developing countries to reduce poverty. However, few studies have systematically and empirically tested the heterogeneous impact of urban–rural integration (URI) on urban and rural poverty reduction. Using China’s provincial panel data and the spatial econometric model, this study explores the relationship between URI and poverty reduction and tests its spatial spillover effects. The results show that URI and rural poverty present an inverted U-shaped relationship, which first aggravates and subsequently alleviates rural poverty. That has spatial overflow. For urban poverty, URI first reduces and then increases urban poverty in the province. In contrast, URI and urban poverty have an inverted U-shaped relationship in the surrounding province. By calculating the inflection point value, this study finds that when the URI level is between 0.300 and 0.480, URI can contribute to urban and rural poverty reduction in the local and surrounding areas. In the future, the government should dynamically monitor changes in urban and rural poverty while improving the development of URI.

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Notes

  1. The state implemented a policy of uniform purchase and supply of commodities, such as cotton yarn and grain. The government purchased agricultural products from farmers through administrative means, sold them at low prices to urban residents and enterprises, and finally accumulated national funds for industrialization through industrial profit tax payments. In the process of implementing this policy, the transfer of agricultural accumulation to industry was realized in the form of price scissors difference of agricultural products.

  2. Dividing the household registration of urban and rural households into agricultural and non-agricultural households to legally restricting peasants’ access to cities or restricting their movement in cities.

  3. Farmers contract and operate the land and other large production materials of collective economic organizations (mainly villages and groups) on a household basis, and carry out production and operations autonomously in accordance with the contract. A small portion of their operating income is paid to the collective and state taxes in accordance with the contract, while the rest goes to the farmer. The household contract responsibility system improves farmers’ motivation to produce, and releases agricultural productivity. In terms of land output efficiency, for example, grain yield per hectare increased from 2,527 kg in 1978 to 4,377 kg in 1997, an average annual increase of 2.9%.

  4. http://www.gov.cn/jrzg/2013-11/06/content_2522445.htm.

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  1. College of Management and Economics, Tianjin University, No. 92 Weijin Road, Nankai District, 300072, Tianjin, China

    Kunzai Niu & Hengzhou Xu

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  1. Kunzai Niu
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  2. Hengzhou Xu
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Correspondence to Hengzhou Xu.

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Table A1 Statistical description of each variable included in the URI.
Full size table

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Niu, K., Xu, H. Urban–rural Integration and Poverty: Different Roles of Urban–rural Integration in Reducing Rural and Urban Poverty in China. Soc Indic Res 165, 737–757 (2023). https://doi.org/10.1007/s11205-022-03042-0

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