The Analysis, Based On The Decomposition Of The Farmers' Income Gap In China's Southwestern Border

With the continous deepening of reform and opening up, income inequality of the residene become more and more increases, this trend will restrist the economic growth to some extent, and even intensify social contradictions. Correct understanding of the impact factors of the income gap will help countries to develop relevant policies to ensure the country's econmic health, stability, susutainable development. The text of the eyes locked farmer in southwest of China border, survey data from 2006-2008 , using comparative static decomposition analysis and regression decomposition analysis, income gap is decomposited from the two factors of the income composition composition and influencing factors, to seek the main factors of increased income inequality.This paper disaggregates the income of farmers into different factor components. Analysis of the proportion of farmers'household income and the contribution of inequality index, to help our understanding of characteristics of household income, thus to understand the real causes of income inequality. The household income factor decomposition based on regression equation, it is the most important of the estimates of household income function. In this paper, we use two multi-level statistical model to estimate income regression equation, and to decomposite, observe the impact of household income gap between the internal and external factors.From the results of the analysis, the operating revenue is an important source of income for local farmers, become a major factor of total income gap. Physical capital, human capital and management system are some important factors affecting the income gap.