Economic Communication: The Influence of High-Speed Rail on Urban-Rural Income Inequality in China

Existing studies have explored the influence of high-speed rail (HSR) on efficiency-related outcomes. However, little attention has been paid to the issues of urban-rural income inequality in relation with HSR. Based on social exclusion theory, we suggest that HSR could enlarge urban-rural income inequality. Drawing on the methods of DID, PSM-DID, and the fixed effect model, we analyzed a panel data from 328 cities in China from 2006 to 2021, and found strong support for research hypothesis. The results show that the although HSR would be significant positive associated with urban-rural income inequality, governments can mitigate this adverse effect through effective governance. On the one hand, with the improvement of regional public transport accessibility, the positive impact of HSR on the urban-rural income inequality will be weakened; on the other hand, as the level of regional social security fiscal expenditure increases, the positive impact of HSR on the urban-rural income inequality would also be weakened.