The impact of industrial structure upgrades on the urban–rural income gap: An empirical study based on China's provincial panel data

Abstract Using panel data for 29 provinces in China from 2000 to 2018, this paper mainly presents an empirical study on the impact of industrial structure upgrades on the urban–rural income gap. An overall analysis at the national level is conducted before the separate analysis of the relevant content of China's eastern, central, and western regions. The results reveal that at the national level, the upgrading of industrial structure is conducive to narrowing the urban–rural income gap; however, the impact of industrial structure upgrades on the urban–rural income gap differs from different regions: in eastern China, the impact of industrial structure upgrades on the urban–rural income gap varies over time, and the relationship between the two variables shows an N‐shaped curve; in central China, the upgrading of industrial structure can help to narrow the income gap between urban and rural areas; in western China, upgrading the industrial structure will widen the urban–rural income gap. Finally, certain policy recommendations are proposed.