Analysis of modern circulation industry development level using industrial structure mechanism

Area of Science:

• Environmental Economics
• Urban and Regional Economics
• Industrial Economics

Background:

• China's rapid industrial transformation has led to significant urban income inequality.
• Understanding the interplay between industrial structure, urban population dynamics, and income disparities is crucial for sustainable development.
• Existing research often overlooks the nuanced relationship between environmental regulations and industrial upgrading in regional contexts.

Purpose of the Study:

• To investigate the impact of China's industrial structure improvements on urban-rural income inequality from 2011 to 2020.
• To propose and validate a mechanism for the industrial structure upgrading model (MISUM) within the modern circulation industry.
• To analyze the influence of environmental regulations on industrial structure adjustments across different regions.

Main Methods:

• Empirical research approach combined with mechanical analysis.
• Development and application of the Mechanism for the Industrial Structure Upgrading Model (MISUM).
• Utilizing urban-rural consumption gap as a proxy for income discrepancy.

Main Results:

• Improvements in industrial structure significantly reduce urban-rural income gaps, with urban population acting as a key mediator.
• Modernization and industrial upgrading have demonstrably narrowed rural-to-urban economic disparities.
• Environmental standards exert a long-term, qualifying impact on provincial industrial structures, showing location-specific dependencies.

Conclusions:

• Industrial structure optimization is a potent tool for mitigating urban-rural income inequality in China.
• The proposed MISUM effectively models industrial upgrading, achieving high accuracy (94.2%) and efficiency (97.8%).
• Environmental regulations play a critical role in guiding industrial structural improvements, with significant cross-provincial and long-term effects.