The objective of this paper is to investigate the impacts of urbanization on influencing the rural–urban consumption disparity in China, a research gap which has not been bridged so far. Adopting a provincial dataset from 1997 to 2014, a generalized method of moments (GMM) estimator is employed to reveal the impact of urbanization on the ratio of per capita consumption expenditure of the urban households to the rural households, along with other socioeconomic variables. Empirical results show salient relationship between increasing urbanization ratio and declining rural–urban inequality. Significant impact of education costs on increasing the rural–urban inequality is also observed. Other factors that increase the disparity include foreign investment and gross regional product (GRP) indices. Industrial structure, costs of housing and health care are insignificant factors. The results of this study helps in understanding China’s new urbanization development strategy in a better way.
About the Speaker:
Dr. LI Jing Victor is Assistant Professor at the Department of Geography and Resource Management; Deputy Director of Center of Land Resource and Housing Policy, Institute of Future Cities; CUHK. Victor’s research interest includes housing economics, urban studies, sustainable development, and Belt & Road. His work appeared in journals, books and think tank such as: Urban Studies, Regional Science and Urban Economics, China Economic Review, The Singapore Economic Review, Journal of Urban Planning and Development, Cities, Habitat International, Journal of Construction Engineering and Management, Environment and Planning B, Energy Policy, Routledge, Edward Elgar, and Asian Development Bank Institute.
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CENTRE OF URBAN STUDIES AND URBAN PLANNING
THE UNIVERSITY OF HONG KONG