Can the integration between urban and rural areas be realized? A new theoretical analytical framework

Urban-rural integration is an advanced form resulting from the future evolution of urban-rural relationships. Nevertheless, little research has explored whether urban and rural areas can move from dual segmentation to integrated development from a theoretical or empirical perspective. Based on the research framework of welfare economics, which offers an appealing paradigm to frame the underlying game between cities and villages, this study clarifies the ideal state of urban-rural integration. It then proposes a series of basic assumptions, and constructs a corresponding objective function and its constraints. Moreover, it assesses the possibility of seeing the transmutation from division to integration between urban and rural areas with continuous socio-economic development. The authors argue that the ideal state of urban-rural integration should be a Pareto-driven optimal allocation of urban-rural resources and outputs, and the maximization of social welfare in the entire region. Based on a systematic demonstration using mathematical models, the study proposes that urban and rural areas can enter this ideal integrated development pattern when certain parameter conditions are met. In general, this study demonstrates the theoretical logic and scientific foundations of urban-rural integration, enriches theoretical studies about urban-rural relationships, and provides basic theoretical support for large developing countries to build a coordinated and orderly urban-rural community with a shared future.