Analyzing the transportation infrastructure-rural industry integration relationship in China

Transportation infrastructure is crucial to China's economic growth because it substantially contributes to the holistic development of rural primary, secondary, and tertiary industries. This study innovatively examines transportation infrastructure and urbanization levels to explore, both theoretically and empirically, their relationship with the holistic development of primary, secondary, and tertiary industries in rural China, and the mediating role of urbanization on this relationship. We employed fixed-effects models, the entropy weight approach, mixed regression, and generalized method of moments to analyze the data of 30 provinces across China from 2013 to 2020. The results indicate that the construction of transportation infrastructure directly fosters the collective advancement of such industries in rural areas and that urbanization partially mediates the transportation infrastructure-rural industry integration relationship. However, the western region shows disparities in the integrated development of these sectors. Further analysis reveals that foreign investments amplify the positive influence of transportation infrastructure on rural industry integration. Essentially, the enhancement of rural transportation infrastructure, promotion of urbanization, implementation of strategic planning, and strengthening of support mechanisms are crucial aspects in the comprehensive development of rural industries and the achievement of rural revitalization in China.