The Distributional Effect of Events on Rural and Urban Households in China

Cao, Z., Li, S., Song, H. and Shen, S. 2017. The Distributional Effect of Events on Rural and Urban Households in China. Journal of Travel Research. 56 (7), pp. 881-892. doi:10.1177/0047287516667849

TitleThe Distributional Effect of Events on Rural and Urban Households in China
AuthorsCao, Z., Li, S., Song, H. and Shen, S.
Abstract

International tourism is considered an effective means of economic development. However, the effects of tourism are not evenly distributed between rural and urban households in China. In the wake of significant socioeconomic events, the uneven distribution of the economic effects has huge welfare implications for Chinese households. This study is the first attempt to evaluate the distributional effect of two large, recent, sequential events on China's rural and urban households. It adopts an innovative approach that combines an econometric model and a two-household computable general equilibrium model. The results show that in terms of welfare, urban households were more adversely affected by the events than rural households. To mitigate the loss of welfare, measures should be taken to continually promote China as a destination and attract tourists after such events occur. Meanwhile, training and education should be made more accessible to rural households to increase their job opportunities.

Keywordsrural-urban divide, distributional effect, impact of events, econometric model, computable general equilibrium (CGE) model
JournalJournal of Travel Research
Journal citation56 (7), pp. 881-892
ISSN1552-6763
Year2017
PublisherSage
Accepted author manuscriptDistributional effect_to be submitted final.pdf
Digital Object Identifier (DOI)doi:10.1177/0047287516667849
Publication dates
Published21 Sep 2016
Published online21 Sep 2016
Published in print01 Sep 2017

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