Study On Farmers' Investment Structure

Economic growth is not only the problem of total, but the problem of structure's changes.Structure's orderly,reasonable changes directly affect the speed of economic growth.Since the80's of last century, with the development of economy, farmers' income increases. Whenfarmers' income increases to a certain extent,it is very difficult to to raise revenue relying onincreasing investment.To bring the greatest benefits,farmers adjust their own resources toinvestment.The ability of using resource has affected greatly on the farmers' income. In the80's of last century, with the implementation of household contract responsibility system,farmers' major investment is agriculture in order to meet the basic needs for survive. After the90's of last century, farmers' income increase, farmers had the desire to adjust investmentstructure in order to increase income.So,it is important to research the farmers' investmentstructure.The study taking Shandong Province as an example, drawing on existing theories,introducing the farmer investment structure decision theory,construct the model ofinfluencing farmer's investment structure.According to the data of410farmers in Shandongprovince rural survey team, based on the time series model, panel data model and dataenvelopment analysis (DEA) analyzes the cahnges of farmers' investment structure andfeatures from4aspects, including the farmer income, family asset level, regional differencesand the changes of system.Based on the analysis of structural change,getting the following conclusions:(1) Analyzing the farmers' investment structure from different statistical description, thefollowing conclusions can be drawn: firstly, in terms of farmers' investments structure ofsource, the borrowed funds is very small, averaging only0.775%; Secondly, in terms offarmers' industrial investment structure, farmers' investment in the first industrial declined,investment in second, three industrial proportion rised; Thirdly, in terms of the nature ofinvestment structure of farmers, farmers' production investment proportion dropssubstantially; Fourthly, in terms of farmal investment structure of farmers, currency level offarmers in Shandong province increased rapidly. This study chooses the industrial investment structure as the object. Farmers is very rational, benefit has a direct impact on choice of theinvestment.(2) The changes of total income, net income and cash income influence the household'sinvestment structure. Namely,changes of farmers' income has a positive effect, but the impactis different; Farmer is rational, the influence of permanent income of farmers' in investmentstructure is more than temporary income. When the permanent income increases, farmers willincrease the second or third industrial investment, and when the temporary income increase,farmers will increase the first industrial investment; Different sources of income had affectedfarmers industrial investment structure. The results showed that different sources of incomehave different marginal propensity to investment.(3) Farmers' existing assets of investment analyzes the choice of industrialstructure.Saving of farmers' promoted three industrial investmen. The increase of the farmers'fixed assets obstructed the fist industrial investment.The increase of farmers' cash reduced thefirst and second industrial investment, the impact of second industry investment is greaterthan the first industry investment. Rural housing of the farmers' reduced all the investment.(4) Through panel data model, the impact of the different region on the farmers'investment is made. Regional differences are mainly showed through the degree ofmarketization, this study selected6indicators to measure the degree of marketization.Theresults prove that apart from the agriculture machinery,the increase of other factors increasedthe farmers' third industrial investment. The non-agricultural labor force increase theefficiency of labors' use, promoted farmers' first industrial investment; Farmers' wagereduced the first industrial investment; Cash of farmers' income increases the efficiency offarmers' second and third industrial investmet.(5)Using DEA(data envelopment analysis) evaluate the efficiency of famers' investmentstructure.Through optimizing the investment structure,revenue growth is mainly in thewestern region of Shandong Province.The investment structure of famers in the westernregion is more efficient than in the eastern region.(6) Institutional change is one of the important factors influencing the farmers'investment structure.In the study,four facors are chosed in institutional,including dualstructure of urban and rural, tax reform, the rural financial system reform and the policy offinancial support to agriculture. Conclusions are obtained as follows, dual structure of urbanand rural in Shandong province is increased, making that farmers' investment in the firstindustry was reduced, and the second,third industrial investment increases; The tax has more effect on their first industrial investment;Farmers' loan is bigger, farmers' firstindustrial investment is smaller, and second,three industrial investments are larger;Agricultural expenditure of government has positive role in the level of farmers' firstindustrial investment ratio, and reverse effect on the scond or third industrial investment ratio.