Comparison And Analysis Of Farmers' Business Creation In Developed Region And Underdeveloped Region

Considering the situation of the slowner increase of farmers' income and the widening gap between urban and rural areas, and viewing comprehensively the statement in the countrys and regions in East Asia, we find that the key factors improving farmers' earings are investment from the farmers and business creation, while the farmers in China generate their income mainly from agriculture and working as migrant workers in urban areas. So the study proposes that the govement should make the policies of encouraging farmers to creat their businesses.Based upon the investigation on the farmers' business creation in Zhejiang Province and Jiangxi Province, the study analyzes the differences in farmers' business creation between Zhejiang Province and Jiangxi Province.First of all, it performs statistical research on the individual characteristics, social and economic characteristics, and farmland use states,or moves to comparison of farmers who have created their businesses in the two provinces.The activity index to describe the farmers' business creation has been established and used to analyze the differences between Zhejiang Province and Jiangxi Province.Then it employs the methods of T Test with independent samples to verify whether there is any significant difference in individual characteristics, social and economic characteristics, and activity index of farmers' business creation in two provinces. Based on the outcome of T Test with independent samples, the study proposes that the reason of differences in farmers' business creation between Zhejiang Province and Jiangxi Province, is not the farmer capability, but the system-related factors and the external environment. The Random Effects Model is adopted to assess the influential factors in farmers' business creation, the income rate of urban and rural residents and the industrialization degree are found to be the two most important influential factors. Finally, the income rate of urban and rural residents and the industrialization degree are two dominate factors to explain the regional differences between Zhejiang Province and Jiangxi Province both theoretically and practically.Based on the analysis of positive proofs, the study analyzes the existing problems in Jiangxi Province compared with Zhejiang Province on farmers' business creation, and suggestions are provided in terms of how to in speed up the step of farmers' business creation in Jiangxi province.