Which is important?—the economy or people’s livelihood

Figures & data

Table 1. Descriptive analysis.

Variables	Abbr.	Obs	Mean	Std. Dev.	Min	Max
Economic catch-up	ecup	600	5.8223	4.9037	0.3896	29.9101
Urban-rural income gap	thi	600	0.1242	0.0591	0.0127	0.2936
Adjustment range of industrial structure	adj	600	15.0129	15.3251	0.0000	86.6472
Adjustment quality of industrial structure	qua	600	8.4004	5.5779	1.1102	31.7423
Urbanization	urb	600	0.4986	0.1518	0.1819	0.8960
Fiscal expenditure	gov	600	0.5114	0.1888	0.1483	0.9509
Economic opening	ope	600	0.6306	0.7173	0.0662	7.6258
Unemployment	une	600	3.5049	0.7165	0.8000	6.5000
Education	edu	600	8.5437	1.0926	5.4383	12.7820
Transportation	roa	600	2.7961	3.5204	0.2326	18.1182
Regional economic development	pgdp	600	3.3112	2.6797	0.2759	16.4563
Environmental regulation	poll	600	15.3265	13.6438	0.2062	110.3387

Source: Author calculation.

Table 2. Influence of industrial structure adjustment on economic catch-up and the urban and rural disposable income gap.

	Economic catch-up			Urban-rural income gap
Variables	(1)	(2)	(3)	(4)	(5)	(6)
adj	0.0206*** (2.82)		0.0101**  (1.99)	0.0175** (2.01)		0.0203** (1.98)
qua		−0.8068*** (8.82)	−0.5014** (−2.11)		0.2008*** (3.68)	0.2396*** (3.81)
urb	−0.6978*** (−6.97)	−0.1056*** (−3.23)	−0.1485* (−1.76)	−0.5942*** (−5.06)	−0.6447*** (−6.06)	−0.6531*** (−6.15)
gov	−1.0672*** (−9.45)	−0.7391*** (−8.09)	−0.5642* (−1.63)	−0.4156*** (−3.41)	−0.5805*** (−4.05)	−0.5867*** (−4.56)
ope	0.0773** (2.12)	0.0900*** (3.09)	−0.0089 (−1.03)	0.0528 (1.41)	0.0486 (1.51)	0.0484 (1.31)
une	−0.2619*** (−3.04)	−0.0558* (−1.81)	−0.0613* (−1.91)	0.1617* (1.60)	0.1674* (1.74)	0.1880** (1.96)
edu	−2.1670*** (−8.20)	0.1848 (0.75)	0.0938*** (3.90)	−0.1346 (−1.33)	−0.2951 (−0.73)	−0.3399 (−0.84)
roa	−0.2950*** (−6.36)	0.0326* (1.79)	0.0122 (1.31)	0.1812*** (3.31)	0.1405** (2.52)	0.1311** (2.35)
pgdp	0.2418*** (4.63)	0.3079*** (7.46)	0.2577*** (6.34)	0.2588*** (4.55)	0.1951*** (3.35)	0.2029*** (3.48)
poll	0.0093 (1.51)	−0.0046 (−1.32)	−0.4806*** (−3.41)	0.0939*** (4.81)	0.0770*** (4.49)	0.0890*** (4.59)
Regional fixed effect	Yes	Yes	Yes	Yes	Yes	Yes
Time fixed effect	Yes	Yes	Yes	Yes	Yes	Yes
ρ	−0.106** (−2.29)	−0.308*** (−7.64)	0.328 (0.68)	−0.345*** (−5.56)	−0.327*** (−5.08)	−0.332*** (−5.37)
R^2	0.611	0.759	0.564	0.401	0.251	0.204
LogL	−77.861	125.497	−1235.812	33.816	39.109	41.060
N	600	600	600	600	600	600

*,*,***Show significant levels at 10%, 5%, and 1%.

Source: Author’s estimations.

Table 3. Simultaneous equation estimation of economic catch-up and the urban-rural income gap.

	Economic catch-up		Urban-rural income gap
	3SLS	GS3SLS	3SLS	GS3SLS
Variables	(1)	(2)	(3)	(4)
w*ecoup		0.0213** (2.38)		0.1550** (1.98)
w*thi		2.028** (2.20)		−0.2580*** (−3.84)
ecoup			−0.0149*** (−3.12)	−0.2753*** (−4.63)
thi	−1.6343*** (−3.84)	−1.9585*** (−4.45)
urb	−1.8898*** (−3.83)	−3.6220*** (−3.57)	−0.9166*** (−2.69)	−0.6324*** (−5.74)
gov	−1.1232 (−2.13)	−3.8951*** (−3.67)	−0.3161*** (−4.64)	−0.7391*** (−6.01)
ope	−0.0995 (−0.39)	−0.1826** (−1.96)	−0.0103 (−1.42)	0.0583* (1.66)
une	−0.2246 (−1.35)	0.5962* (1.71)	0.0108 (1.18)	0.0980 (1.56)
edu	−4.0256** (−1.99)	2.5925* (1.88)	−1.0894*** (−5.38)	0.3699** (1.97)
roa	0.7207*** (3.77)	−2.1415*** (−4.05)	−0.0093 (−1.50)	0.1374*** (2.54)
pgdp	1.1116*** (3.41)	1.8086*** (3.54)	0.0013 (1.04)	0.1864*** (3.30)
poll	−0.3119 (−1.57)	0.5065*** (2.93)	0.0806*** (4.31)	0.0660*** (3.53)
R^2	0.5487	0.457	0.6807	0.525
N	600	600	600	600

*,*,***Show significant levels at 10%, 5%, and 1%.

Source: Author’s estimations.

Table 4. Influence of industrial structure adjustment on economic catch-up and disposable income in urban and rural areas.

	East		Centre		West
	Economic catch-up	Urban-rural income gap	Economic catch-up	Urban-rural income gap	Economic catch-up	Urban-rural income gap
adj	0.0152** (2.11)	−0.0489** (1.99)	0.0351*** (3.48)	−0.0860* (−1.92)	−0.0829** (−2.17)	0.0021*** (2.77)
qua	0.5081*** (7.82)	−0.4483** (−2.06)	−3.6300*** (−3.22)	−0.0102 (−1.55)	−0.8157*** (−11.23)	0.1572*** (3.44)
urb	−0.2598 (−0.41)	−1.0450 (−4.72)	−6.3935*** (−7.17)	−0.5814*** (−5.77)	0.5927*** (3.29)	−0.1138 (−1.01)
gov	−0.3437 (−1.29)	−1.6024*** (−3.77)	−3.0616 (−1.26)	0.4277*** (4.08)	−0.4150*** (−2.88)	−0.1483* (−1.65)
ope	0.2293 (0.94)	−0.0404 (−1.47)	0.7971** (1.97)	−0.0728** (−2.02)	−0.1032** (−2.46)	−0.0253 (−1.21)
une	1.2081** (2.19)	0.1050 (1.54)	0.3872 (1.23)	0.5581*** (6.35)	−0.1723 (−1.22)	0.0555* (1.63)
edu	0.4772 (0.15)	−0.4369 (−0.38)	−5.9735 (−0.80)	0.5300* (1.62)	0.4025 (0.90)	−0.0429 (−1.16)
roa	−1.2299*** (−4.21)	0.2240** (2.23)	2.2084 (1.29)	0.3554*** (7.72)	0.0242 (1.31)	−0.1019** (−2.13)
pgdp	0.7294 (1.22)	0.7661*** (3.64)	0.1016 (1.40)	0.0971*** (2.38)	0.0299 (1.44)	0.0220 (0.52)
poll	−0.3716*** (−3.10)	0.1144*** (2.72)	−0.1298 (−1.31)	−0.0981 (−1.44)	0.0213 (0.82)	0.0896*** (5.77)
Regional fixed effect	Yes	Yes	Yes	Yes	Yes	Yes
Time fixed effect	Yes	Yes	Yes	Yes	Yes	Yes
ρ	−0.568*** (−10.81)	−0.379*** (−5.22)	−0.094** (−2.18)	−0.1449** (−2.29)	−0.1839** (1.98)	0.0127 (1.12)
R^2	0.650	0.311	0.503	0.358	0.658	0.257
LogL	−280.98	−171.817	−301.897	121.433	194.070	199.212
N	220	220	160	160	220	220

*,*,***Show significant levels at 10%, 5%, and 1%.

Source: Author’s estimations.

Table 5. Estimation of the simultaneous equation between regional economic catch-up and the urban-rural income gap.

	East		Centre		West
Variables	Economic catch-up	Urban-rural income gap	Economic catch-up	Urban-rural income gap	Economic catch-up	Urban-rural income gap
w*ecoup	−0.5134*** (−4.60)	0.1691*** (2.83)	−0.3432*** (−3.98)	−0.0983 (−1.25)	−0.2599** (−2.60)	0.0169*** (3.07)
w*thi	1.282*** (2.86)	−0.1364** (−2.40)	−2.9091 (−1.10)	−0.1652** (−2.05)	2.4809*** (2.83)	−0.5643*** (−5.65)
ecoup		−0.0948*** (−4.45)		−0.0134*** (−3.16)		0.0111*** (4.46)
thi	−1.2838*** (−2.66)		−6.0977*** (−3.64)		8.0069*** (4.49)
urb	−3.5274*** (−4.51)	−1.1983*** (−5.15)	−2.1460*** (−2.78)	−0.8235 (−5.01)	−8.3316 (−3.65)	−0.2538 (−2.98)
gov	−0.6755 (−1.48)	−0.9355** (−2.26)	−6.7447*** (−2.67)	0.1588 (1.38)	−11.9917*** (−3.85)	0.1824*** (3.02)
ope	0.5947** (2.05)	−0.0872 (−1.03)	4.1998*** (3.99)	−0.0303* (−1.61)	−1.3678*** (−2.64)	−0.0221 (−1.10)
une	0.7558 (0.98)	0.4929** (2.19)	7.2238*** (3.31)	0.7140*** (2.89)	−1.3324* (−1.69)	−0.3689*** (−5.32)
edu	−2.4020* (−1.69)	−1.1859 (−1.14)	−3.8735*** (−5.16)	−0.2140* (−1.63)	−3.1490 (−0.57)	0.2848 (1.35)
roa	−0.7713** (−2.17)	0.1033 (0.95)	9.6713*** (4.20)	0.5763*** (5.99)	4.8966*** (7.89)	−0.1724*** (−6.82)
pgdp	1.2700* (1.74)	1.0809*** (5.18)	0.3665 (1.14)	0.1152*** (2.87)	0.2518 (1.28)	0.0154 (1.45)
poll	−0.0449 (−1.32)	0.0820 (1.95)	1.1619 (−1.41)	−0.0158 (−0.71)	0.6613* (1.75)	0.0824*** (6.43)
R^2	0.545	0.305	0.823	0.452	0.963	0.687
N	220	220	160	160	220	220

*,*,***Show significant levels at 10%, 5%, and 1%.

Source: Author’s estimations.

Table 6. Robustness test.

	SAR		GS3SLS
Variables	Drat	Dthi	Drat	Dthi
w* Drat			0.3716** (2.19)	0.2347*** (4.19)
w* Dthi			−0.2698*** (−4.10)	−0.0187** (−2.05)
Drat				−0.0110** (−2.16)
Dthi			−0.1068*** (−4.14)
adj	−0.0106** (1.97)	0.0457** (2.34)
qua	−0.2065* (−1.66)	0.0318** (2.09)
Control variables	Yes	Yes	Yes	Yes
District Controlled	Yes	Yes	Yes	Yes
Time controlled	Yes	Yes	Yes	Yes
ρ	0.0737** (2.33)	0.5161** (2.11)
R^2	0.315	0.532	0.447	0.753
LogL	−912.921	2157.278
N	600	600	600	600

*,*,***Show significant levels at 10%, 5%, and 1%.

Source: Author’s estimations.