Geographical indication, agricultural development and the alleviation of rural relative poverty

Abstract Sustainable development is the power source to promote rural economic and social prosperity and the necessary guarantee for rural revitalization, while rural relative poverty alleviation is the inherent requirement for promoting sustainable development and realizing rural revitalization. The pro‐agricultural attribute of geographical indication determines that it can be an important tool to alleviate rural relative poverty. This study analyzes the relationship between geographical indication and rural relative poverty alleviation, as well as the mediating role of agricultural industry agglomeration and the moderating role of agricultural scale operation. We use global Moran's I and spatial Durbin models to achieve these objectives, using panel data from 218 cities in China spanning from 2008 to 2019. The results show that: (1) During the study period, relative poverty in China exhibits a distinct pattern of contiguous distribution, and there has been a significant reduction in the number of areas with high levels. Notable progress has been made in alleviating relative poverty in the central, northeastern, and southern regions of China. (2) Geographical indication can alleviate rural relative poverty not only within its region but also in neighboring regions. (3) Geographical indication can alleviate rural relative poverty through agricultural industry agglomeration, and agricultural scale operation can strengthen the relative poverty alleviation effect of geographical indication. This paper enriches the study of relative poverty alleviation mechanisms and reveals how geographical indications can help. The results can provide useful insights for poverty alleviation in poor areas through geographical indication and a new practice path for rural revitalization.