Publication: Role Of Digitalization, Entrepreneurship And Foreign Direct Investment On Urban-Rural Income Inequality In China
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Date
2025-07
Authors
Zhang, Dansha
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Abstract
The promising picture of China’s booming economy is overshadowed by the issue of urban-rural income inequality. This study suggests that digitalization, entrepreneurship, and foreign direct investment (FDI) are key factors in addressing
urban-rural income inequality. Using the Generalized Method of Moments (GMM) approach and covering 265 cities in China from 2013 to 2022, the study observes that digitalization is a potential solution for reducing urban-rural income inequality as the
answer to the first objective. However, in low-digitalization areas, the digitalization level is too low to have the most significant impact, demanding more vitality for these cities, such as enhancing entrepreneurship. For the second objective, which is
on the role of entrepreneurship on urban-rural income inequality, this study finds that entrepreneurship exhibits varying effects across different digitalization conditions.
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Keywords
Income distribution--China , Equality