IMPACTS OF PUBLIC TRANSPORTATION ON THE URBAN RURAL INCOME GAP IN CHINA

Abstract

The urban rural gap is one of the most changing economic problems that confronting China today. I study this problem by focusing on the impacts of public transportation density on the urban rural income gap using provincial panel data from the last 20 years. I conduct the spatial econometric model in this study to deal with the transportation spillover effects. I use GDP, the degree of openness, and average years in school as my control variables in my estimation. The Result shows increasing transportation density negatively contributes to the urban rural income gap.