The Research On Relationship Between The Variation Of Farmers' Income And Economic Growth

Since China adopted the reform and opening-up policy, the national economy had a sustaining increase in the past 30 years and the income of farmers has also been enhanced greatly. At the present stage, own national situation had determined that the problems facing China's agriculture,rural areas and farmers are considered as a fundamental problem which the socialist market economy faced. The problems will still be the key to impacting China's reform and development for the future. Currently, problems facing China's agriculture,rural areas and farmers mainly focused on the income of farmers, the sustained and steady growth of the farmers income plays a crucial role in the completion of China's economic transformation and is also one of the important factors in affecting sustained development of the national economy and social stability. The growth of farmers'income slowing down that not only influences agricultural development and rural stability, but also has a close relation with the overall development of the national economy. It has become a main factor in impacting the demand of domestic consumption and the issue has aroused extensive attention to all walks. Therefore, how to increase farmers'income has become an arduous task of China's agricultural and rural economy presently. In this paper, we mainly studied the relationship between farmers'income and economic growth in theoretical and empirical point and provided scientific measures and suggestions on how to make a more coordinated growth between farmers'income and national economy.Based on the results of previous research, firstly the paper analyzed the factors that affected the income of farmers in agricultural income and non-agricultural income respectively; and then using Co-integration theory and ECM made an empirical analysis with the historical data of China's economic growth and farmers'income in order to study the long-run equilibrium relationships and short-term dynamic causal relations between economic growth and farmers income, we found that the growth of farmers'income and economic is basically coordinated and economic growth has a positive affection on farmers'income; after that using VAR model analyzed the relationship among farmers income,consumption and economic growth, and found that Economic growth contributed to the improvement of farmers'income in the long run, but there was fluctuation in short time, farmers'income increasing led to sustained economic growth and was one of the long-term factors of economic growth, but it had a relatively weak effect on economic growth; Finally, based on the earlier study we provided scientific measures and suggestions in the two sides of agricultural income and non-agricultural income separately on how to improve farmers'income effectively and insure a more coordinated growth between farmers'income and national economy.