Research on the Impact of Urban Rural Factor Flow on the Income Gap between Urban and Rural Areas in the Western Region

Based on provincial-level panel data from 2000 to 2020, this article uses a bidirectional fixed effects model to study the impact of urban-rural factor mobility on urban-rural income inequality. The results showed that: firstly, agricultural price policies have a significant negative impact on the urban-rural income gap. Secondly, natural disasters have a significant negative impact on the urban-rural income gap. Third, the proportion of fixed assets investment in agriculture has a significant negative effect on the urban-rural income gap. Fourthly, the degree of agricultural modernization has a significant negative impact on the urban-rural income gap. Fifth, the density of agricultural machinery has a significant negative impact on the urban-rural income gap. After replacing the estimation method with non parametric estimation and lagged first-order regression, the results remained robust.