Abstract
Factors that influence an increase in per capita net income of rural residents in China were investigated using a market potential analysis. The market size of vegetables and the traveling time as economic distance were noted in the calculations. The results indicate that the vegetable market potential was correlated with the income of rural residents. This indicates the vegetable market potential is one factor that increases the income of rural residents. The differences between the coefficients of regression for coastal and inland regions indicate income gaps are expanding under the present structure. Moreover, China's transportation policy, which plans to construct five latitudinal highways and seven longitudinal highways, will equally increase market potential all over China. Therefore this will expand the income gap between coastal and inland regions.
