The nonlinear effects of tourism on rural income inequality and urban-rural income inequality: Evidence from China

Tourism's relationship with income inequality is a hot spot in the academic community; however, few studies focus on how tourism shapes rural income inequality, despite its significant role in rural poverty alleviation. This article investigates the nonlinear effects of tourism on urban-rural income inequality and rural income inequality based on data from China's provincial regions over the period 1995-2018, using the dynamic panel data approach. This study further examines the regional heterogeneity of such effects. The results demonstrate that for the national sample, there exists a significant cubic curve relationship between domestic tourism and rural income inequality. However, inbound tourism's relationship with rural income inequality is not significant. Besides, there exists an N-shaped Kuznets curve between domestic or inbound tourism and urban-rural income inequality. The effects of tourism on rural income inequality and urban-rural income inequality vary significantly across the eastern, middle, and western regions. From east to middle to west, the significance of inbound tourism's influence on income inequality decreases gradually. This study also highlights some critical theoretical and practical implications. Unlike prior studies, this article builds the first comprehensive research framework consisting of tourism, rural income inequality, and urban-rural income inequality.