Rural Industrial Revitalization and the Common Prosperity of Rural Inhabitants in China: Exploring Synergies Between Efficient Governance and Effective Markets

The common prosperity of rural inhabitants is a fundamental requirement of Chinese-style modernization, with the revitalization of rural industries offering new opportunities to achieve this goal. Utilizing panel data from 31 Chinese provinces (2012–2023), this study examines the impact and mechanisms of the revitalization of rural industries on rural inhabitants’ common prosperity. The results show that the revitalization of rural industries significantly promotes common prosperity among rural inhabitants, with this conclusion holding across various robustness tests. The revitalization of rural industries primarily advances common prosperity through enhancing labor productivity and driving agricultural technological innovation, representing efficiency and impetus transformations. The new rural collective economy positively moderates common prosperity via the efficiency path but moderates it negatively via the impetus path. The “efficient government–effective market” coupling coordination exhibits a positive threshold effect on the revitalization of rural industries’ impact on common prosperity, intensifying this positive effect as coordination deepens. Strategic recommendations include optimizing rural industry structures, enhancing collective economies, and strengthening government–market coupling to accelerate common prosperity.