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Can the integration of cultural and tourism development narrow the regional income gap? The role of foreign direct investment

Year: 2025

Type: article

Abstract: This paper relies on provincial panel data from China between 2010 and 2023 to systematically examine the mechanism linking the integrated development of the cultural tourism industry with the dynamic equilibrium of income disparities between urban and rural residents. It further investigates the moderating effect of foreign direct investment in this process. The econometric analysis results indicate that the integration of the cultural and tourism industries significantly suppresses the income gap between urban and rural residents. Foreign direct investment plays a notable moderating role in the relationship between the integration of cultural tourism and income disparities, exhibiting significant regional heterogeneity. Further spatial heterogeneity tests reveal that the impact of cultural tourism integration on income disparities shows pronounced differences across various regions.

Source: International Review of Economics & Finance

DOI: 10.1016/j.iref.2025.104294

Authors: Lixue Wang, Tiequan Li, Xinle Peng, Rui Liu

Institutions: City University of Macau, Northwest Normal University, Zhuhai College of Science and Technology

Language: English

Topic: Regional Economic and Spatial Analysis

Subfield: Economics and Econometrics

Field: Economics, Econometrics and Finance

Domain: Social Sciences

SDGs: Reduced inequalities, Decent work and economic growth, No poverty

Open Access status: gold

Estimated APC paid: $1,930