Proceedings of the 2026 3rd International Conference on Applied Economics, Management Science and Social Development (AEMSS 2026)

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Does Credit Expansion Promote Common Prosperity? Evidence from County-Level Urban–Rural Income Disparities

Authors
Ziyun Wang1, Zhe Li2, *, Di Hu2, Wushen Huang2, Wenze Xiong3
1Hainan Vocational University of Science and Technology, Haikou, Hainan, 571126, China
2City University of Macau, Macau, 999078, China
3School of Business, University of Auckland, 12 Grafton Road, Auckland, New Zealand
*Corresponding author. Email: F25092100152@cityu.edu.mo
Corresponding Author
Zhe Li
Available Online 12 May 2026.
DOI
10.2991/978-94-6239-672-2_32How to use a DOI?
Keywords
Common Prosperity; Urban–rural Income Gap; Credit Expansion
Abstract

The focus of common prosperity is to narrow the income gap between urban and rural residents. However, whether the credit expansion really benefits the rural and low-income groups, the existing research still lacks more detailed evidence. This study uses county panel data to compare the different effects of per capita loan expansion on the incomes of urban residents and rural residents. In this paper, the two-way fixed effect model is used to control the county fixed effect and the year fixed effect. At the same time, this paper uses a stacked uniform framework to put urban and rural samples in the same regression, and directly compares the elastic differences between urban and rural income and credit. The results show that the marginal effect of credit expansion on rural income is obviously weaker than that on urban income. Robustness test generally supports the conclusion that “towns benefit and rural areas are suppressed”. Therefore, if more credit resources flow to urban sectors or capital-intensive sectors, financial expansion may increase the difference in income responses between urban and rural areas, thus constraining the goal of common prosperity.

Copyright
© 2026 The Author(s)
Open Access
Open Access This chapter is licensed under the terms of the Creative Commons Attribution-NonCommercial 4.0 International License (http://creativecommons.org/licenses/by-nc/4.0/), which permits any noncommercial use, sharing, adaptation, distribution and reproduction in any medium or format, as long as you give appropriate credit to the original author(s) and the source, provide a link to the Creative Commons license and indicate if changes were made.

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Volume Title
Proceedings of the 2026 3rd International Conference on Applied Economics, Management Science and Social Development (AEMSS 2026)
Series
Advances in Economics, Business and Management Research
Publication Date
12 May 2026
ISBN
978-94-6239-672-2
ISSN
2352-5428
DOI
10.2991/978-94-6239-672-2_32How to use a DOI?
Copyright
© 2026 The Author(s)
Open Access
Open Access This chapter is licensed under the terms of the Creative Commons Attribution-NonCommercial 4.0 International License (http://creativecommons.org/licenses/by-nc/4.0/), which permits any noncommercial use, sharing, adaptation, distribution and reproduction in any medium or format, as long as you give appropriate credit to the original author(s) and the source, provide a link to the Creative Commons license and indicate if changes were made.

Cite this article

risenwbib
TY  - CONF
AU  - Ziyun Wang
AU  - Zhe Li
AU  - Di Hu
AU  - Wushen Huang
AU  - Wenze Xiong
PY  - 2026
DA  - 2026/05/12
TI  - Does Credit Expansion Promote Common Prosperity? Evidence from County-Level Urban–Rural Income Disparities
BT  - Proceedings of the 2026 3rd International Conference on Applied Economics, Management Science and Social Development (AEMSS 2026)
PB  - Atlantis Press
SP  - 342
EP  - 350
SN  - 2352-5428
UR  - https://doi.org/10.2991/978-94-6239-672-2_32
DO  - 10.2991/978-94-6239-672-2_32
ID  - Wang2026
ER  -