The Distributional Effect of Events on Rural and Urban Households in China

Abstract

International tourism is considered an effective means of economic development. However, the effects of tourism are not evenly distributed between rural and urban households in China. In the wake of significant socioeconomic events, the uneven distribution of the economic effects has huge welfare implications for Chinese households. This study is the first attempt to evaluate the distributional effect of two large, recent, sequential events on China’s rural and urban households. It adopts an innovative approach that combines an econometric model and a two-household computable general equilibrium model. The results show that in terms of welfare, urban households were more adversely affected by the events than rural households. To mitigate the loss of welfare, measures should be taken to continually promote China as a destination and attract tourists after such events occur. Meanwhile, training and education should be made more accessible to rural households to increase their job opportunities.

Publication DOI: https://doi.org/10.1177/0047287516667849
Divisions: College of Business and Social Sciences > Aston Business School
College of Business and Social Sciences > Aston Business School > Centre for Personal Financial Wellbeing
Additional Information: © Sage 2017. The final publication is available via Sage at http://dx.doi.org/10.1177/0047287516667849
Uncontrolled Keywords: Rural-urban divide,Distributional effect,Impact of events,Econometric model,Computable general equilibrium (CGE) model
Publication ISSN: 0047-2875
Last Modified: 19 Feb 2024 08:23
Date Deposited: 13 Mar 2019 11:20
Full Text Link: http://epubs.su ... y.ac.uk/813769/
Related URLs: https://journal ... 047287516667849 (Publisher URL)
PURE Output Type: Article
Published Date: 2017-09-21
Accepted Date: 2017-09-01
Authors: Cao, Zheng (ORCID Profile 0000-0002-3545-7313)
Li, ShiNa
Song, Haiyan
Shen, Shujie

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