Tourism economy and inequality in China

Abstract

This dissertation aims to evaluate the impacts of the tourism economy on inequality in China. The research objectives focus on determining the indicators needed to be computed by using the regression model. It employs the ratio of disposable income of urban residents and rural residents to describe the degree of inequality in a province, using the growth rate of international tourism income and domestic tourism income to show the degree of development of the tourism economic system, using the growth rate of Gross Dometic Product as a control variable. Then, this study conducts a unit root test on each group of panel data, and the results show that each group of data is stable; then it uses regression kink design for regression. According to the results of the analysis, this study concludes that international tourism is more likely to aggravate the inequality of cities in the province, but domestic tourism can narrow the gap between urban and rural areas.