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

Zheng Cao, Shi Na Li, Haiyan Song, Shujie Shen

Research output: Journal article publicationJournal articleAcademic researchpeer-review

3 Citations (Scopus)

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.
Original languageEnglish
Pages (from-to)881-892
Number of pages12
JournalJournal of Travel Research
Volume56
Issue number7
DOIs
Publication statusPublished - 1 Sep 2017

Keywords

  • computable general equilibrium (CGE) model
  • distributional effect
  • econometric model
  • impact of events
  • rural–urban divide

ASJC Scopus subject areas

  • Geography, Planning and Development
  • Transportation
  • Tourism, Leisure and Hospitality Management

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