China & World Economy / 106–126, Vol. 26, No. 1, 2018

Identifying the Turning Point of the Urban–Rural Relationship: Evidence from Macro Data

Liangliang Gao, Jiao Yan, Yue Du*

Abstract

The urban and rural dual structure is a defining characteristic of the social and economic development process in China. With rapid urbanization, remarkable development of agriculture and rural modernization, the relationship between urban and rural areas is undergoing significant changes in China. Using macro data, we find that the relationship between urban and rural areas started to change in 2010. The transition has mainly been reflected in three dimensions: agriculture, rural areas and farmers. First, agricultural versatility has gradually increased, and the number of participants in leisure agriculture and rural tourism has grown rapidly since 2010. Second, the rural employment rate has risen gradually, and the share of rural employees in the tertiary sector has grown markedly. Third, the urban–rural income ratio and consumption ratio have begun to decrease, and the levels of consumption of domestic tourism by urban and rural residents are becoming small.

Key words: agricultural diversification, urban–rural consumption ratio, urban–rural income ratio, urban–rural relationship
JEL codes: J24, O18, Q12, R23, R58