From clusters to transformation: how high-value agricultural clusters narrow the urban–rural income gap in China

Purpose High-value agricultural (HVA) clusters have become a crucial strategy for promoting agrarian transformation. This study aims to examine the impact of the HVA cluster's development on the urban–rural income gap from the perspective of the entire industry chain. Design/methodology/approach Based on balanced panel data of 1,200 counties in China from 2014 to 2022, this study empirically examines the impact of HVA clusters' development on the urban–rural income gap using the staggered difference-in-difference (DID) method. Findings The results show that the development of HVA clusters significantly narrows the urban–rural income gap. Improving agricultural technological level, extending industrial chains and cultivating agricultural product brands are important mechanisms. Furthermore, compared with central-western regions and areas with relatively underdeveloped financial levels, the mitigating effect on the urban–rural income gap is more pronounced in the eastern region and areas with higher financial development levels. Originality/value This is the first large-scale quantitative study to evaluate the income redistribution effects of HVA clusters in China. The study highlights the critical role of HVA clusters in facilitating rural industrial upgrading, boosting farmer income, and accelerating agrarian transformation. It provides novel policy implications for scaling up inclusive and sustainable high-value agriculture practices in China and other developing economies facing similar dual-structure challenges.