Concurrent Business Of Peasant And Non-agriculturalization In Transition

The core of present issues facing agriculture rural areas and farmers is the peasant income, which actually equals the transition of employment structure and division of labor of peasant. The concurrent business of peasant, a phenomenon of division of labor which exists in various countries, still has its own characteristics in process of China rural economy transition. Since reform and open policy, our rural agricultural labor force had been unceasingly transferring to non-agricultural industry. Apart from a few people who become real citizen, the majority of the labor only shifts just as production factor without substantive change of their identification. This is a notable feature of rural labor force shift in China transition period. The concurrent business of peasant in perspective of division of labor not only contains the most important economic issues, such as transfer of rural labor force, income growth, economic restructuring, fairness and efficiency between city and countryside, urbanization and so on, but also gets close correlation with New Socialist Countryside and Urban and Rural Integration. Therefore, the study on concurrent business of peasant, which would discover the effective and permanent way of agricultural labor force transfer, has a great practical significance.Maybe affected too much by the framework of Neoclassical Economics and its inherent limitations, the academic circles always concentrate on describing phenomena, data collection and skin-deep analysis, lacking sufficient attention to theoretical and empirical research of this important phenomenon. Therefore, in perspective of division of labor, this dissertation probes into the concurrent business of peasant and makes research on comparative static analysis of general equilibrium, with the Smith-Coase framework, which focuses on the tradeoff between division of labor and transaction cost, and with the method of inframarginal analysis. The study of comparative static analysis of general equilibrium would reveal the influence of constraint conditions to peasant optimized behavior, income and labor force shift, and finally draw policy implications.After developing models of inframarginal analysis under the Smith-Coase framework, this dissertation gives 19 propositions, which coincide the 14 stylized facts of concurrent business of peasant summarized from the literatures in this field. By using the investigation data, the paper discovers that the models confirm the former nine propositions from different perspectives (further data should be collected and processed to test other propositions). In a word, the models developed in this paper present a good capacity of explanation.The transaction cost is constraining condition of division evolution of the concurrent business of peasant. After dividing the transaction cost into two types(technology and institution), this article analyzes them from time, space and the international crosswise, especially the transaction cost directly connected to concurrent business of peasant and reveals the high cost in our country and plenty of room for improvement.Finally, according to the model conclusions and transaction costs of the status quo, this dissertation proposes to reduce technology-based and institution-based transaction costs, make a good relationship among peasant, market and the government, and improve the efficiency of transaction to speed evolution of concurrent business of peasant and further spontaneous, orderly and smooth transfer of rural labor force.