The Impact of Sub-Provincial Decentralization Reform on Urban-Rural Income Gap——From the Perspective of Differentiation Between Municipal Districts and Counties
The sub-provincial fiscal decentralization reform is not only a key factor affecting economic growth,but also plays an important role in narrowing the gap between urban and rural areas.This paper starts from the perspective of differentiation between municipal districts and counties,takes prefecture-level cities as the observation object,and uses the data of prefecture-level cities and municipal districts to study whether the sub-provincial fiscal decentralization reform represented by"Province-Managing-County"has narrowed the gap in economy and society between urban districts and other county-level regions,and thus reduced the overall urban-rural income gap.We find that decentralization to county-level governments reduces the gap in financial resources,education,social security,and economy between municipal districts and counties,ultimately narrowing the urban-rural income gap by significantly increasing the per capita income of rural residents.Heterogeneity analysis shows that the effect of the reform is more evident in the central region,the southern region and the"strong city-weak county"group.Further discussion shows that government competition and supervisory mechanisms,are important factors affecting the effects of decentralization reforms.
Fiscal DecentralizationProvince-Managing-CountyUrban-Rural Income GapDifferentiation Between Municipal Districts and Counties