The Nexus of Regional Integration and Household Welfare: A Case Study of the Yangtze Delta Area

Abstract

Public policies of regional integration have been widely implemented recently in multiple countries as a significant approach to improving regional economic cooperation and reducing economic inequalities. In China, improving household welfare and narrowing welfare gaps become another major purpose of regional integration. Nevertheless, little attention has been paid to household-level impacts of regional integration on improving welfare. This study provides empirical analysis on impacts of regional integration on household welfare by using the case of the Yangtze Delta area from 2010 to 2020. We find that overall impacts of regional integration on improving household welfare and reducing household welfare inequality are significantly positive, and such impacts reveal spatial heterogeneity. Public transport infrastructural integration and city-level migration are two major mechanisms through which such impacts can be amplified. Results remain feasible after a series of robustness tests. We believe that integration should be further implemented to eliminate poverty and boost social welfare in both developed and developing regions in China, and cross-city and interprovincial trade needs to be promoted as an important means of regional integration.