Nonlinear Impact of Circulation-Industry Intelligentization on the Urban-Rural Income Gap: Evidence from China

Integrating informatization into the circulation industry has led to the concept of circulation-industry intelligence. By reducing transportation costs and increasing total factor productivity, the incomes of rural-area residents can be improved; a new pattern of regional economy can be established; urban, rural, social, and economic development can become more coordinated; and social sustainable development can be promoted. In this study, we used China's provincial panel data corresponding to the 2007-2019 period to measure the intelligence index of the circulation industry in each region and determine the factors that affect the urban-rural income gap; thereafter, we conducted comparative analyses. Further, a fixed-effects model was established based on the theory of agglomeration and diffusion effects to analyze the relationship between these two variables. Our analysis identified innovation investment as a significant intermediary mechanism. The robustness of this finding was verified by substituting variables and controlling for endogeneity. Thus, the effect was shown to be regionally heterogeneous. This study innovatively integrated informatization into the circulation industry, and the results obtained provide a reference for formulating transportation infrastructure as well as informatization strategies for promoting urban-rural coordination and sustainable development globally.