Research On The Incentive Mechanism And Income Effect Of The Integration Of Rural Industries

The development of rural areas and rural industries plays an important role in the modernization of agriculture,the development of urban-rural integration as well as the stabilization of society.Since the implementation of reform and opening-up,China's integrated development of rural industries has gone through three stages,namely,the joint operation of agriculture,industry and commerce,the agricultural industrialization operation and the integrated development of rural industries.In addition to basic agricultural development,people have been exploring crossover and integration with other industries,further to both vertical extensions and horizontal expansions in the process of agricultural industrialization,which makes agriculture from “single” to“multiple”.And a modern agricultural industry system has gradually formed during such kind of integrated development.In terms of foreign practice,the development of rural industries presents different modes and characteristics in different historical backgrounds and natural conditions,such as the integration of agriculture,industry and commerce in the United States,the six industrialization in Japan and South Korea,and precision agriculture in Israel,all of which display a basic idea that the development of agriculture can't rely only on itself,but also to combine with the secondary and tertiary industries,and needs to introduce the advanced technology and management experience accordingly.On December 30 2015,the General Office of the State Council issued the document named“Guiding Opinions on Promoting the Integrated Development of the Primary,Secondary,and Tertiary Industries in Rural Areas”,which pointed out that promoting the integrated development of the primary,secondary,and tertiary industries in rural areas(hereinafter referred to as “rural industries”)is an important motivation for expanding channels of farmers' revenue growth and building a modern agricultural industry system,and the inevitable requirement for accelerating the transformation of agricultural development modes and exploring the path of agricultural modernization with Chinese characteristics.The document has charted the course for integrated development of rural industries in China.This paper takes the integration of rural industries as the research object and focuses on the relationship among the incentive mechanism,mode and income effect of the integration of rural industries in China.Firstly,on the basis of the observation of domestic practices,the author uses an evaluation index system of rural industrial integration to measure the development of rural industrial integration in China from2009 to 2018.In general,the degree of rural industrial integration is relatively low in China.It witnessed the rapid development of rural industrial integration from 2009 to2018.The eastern region showed the fastest growth,far ahead of the central,western and northeast areas.The areas with a high degree of integration mostly concentrated in the eastern coastal region,the integration of information technology is stronger than that of industrial chain extension and agricultural multi-functions.Secondly,The power system of rural industrial integration consists of the driving force,pulling force,supporting force and auxiliary force.The driving force are technological progress and institutional relaxation,the pulling force is the increase of consumer demand and the upgrade of consumption structure,the supporting force is the infrastructure construction,basic public services in rural areas and policy support,the auxiliary force is the location and resource superiority.These forces promote the integration of rural industries jointly.Thirdly,rural industrial integration appears in five modes,that is,integration of agricultural industrial chain extension,integration of agricultural function expansion,integration of information technology penetration,integration of competitive industry agglomeration,and integration of urban and rural industry transfer.The main driving force acting on each mode is different.Fourthly,the integration of rural industries has significantly promoted the increase of per capita income of rural residents and narrowed the urban-rural income gap which can be effectted through market effect,resource effect,employment effect and capital effect.Fifthly,through the empirical tests,it is found that the development of rural integration shows a certain degree of inertia and path dependence;the driving force,pulling force,supporting force effect the development of rural integration significantly but auxiliary force;the main forces are different compared to each mode;the integration of rural industries has significantly promoted the increase of per capita income of rural residents through resource effect and employment effect,and narrowed the urban-rural income gap through resource effect,employment effect and capital effect.Sixthly,according to the results of analysis that to promote to the integration of rural industries should start from choosing differentiated paths,strengthening informatization construction,innovating systems and technologies,and consolidating basic guarantees.The innovations of this paper are as follows:(1)On the basis of a multi-product economies of scope,this paper analyses the relationship between the division of labour and agricultural integration in an evolutionary perspective as well as the impact of the commonality of agricultural assets on agricultural integration.(2)This paper constructs an analytical framework for the“incentive mechanism-mode-income effect” of industrial integration in China's rural areas,and brings all three into a unified framework for research.(3)This paper summarizes main forces of agricultural integration and their effects.(4)This paper examines four mediating mechanisms,that is,the market effect,the resource effect,the employment effect and the capital effect,enriching the research on how the integration of rural industries affects rural residents' income and the urban-rural income gap.