Can Transport Infrastructure Decline Urban-rural Income Gap——Empirical Evidence from China

Based on Cross-Province panel data from 1991 to 2007 in China,the paper utilizes spatial econometrics methods to study the effects of transport infrastructure on urban-rural income gap.The empirical conclusion of this paper shows that both the 0-1 matrix and geographic distance matrix,traffic infrastructure variables are significantly negative,that is to say,transport infrastructure declines urban-rural income gap;traffic infrastructure increases 1 unit each,then the income gap will be reduced by 4.2%(7.6%).The effect of highway infrastructure on urban-rural income gap is bigger than that of railway.The transport infrastructure has notable positive spatial effect on urban-rural income gap,and this spatial effect occupies most of the total effect.