The Empirical Analysis Of The Influence Of China’s Rural Transport Infrastructure On Farmers’ Income

Speeding up the construction of new countryside and promoting the balance ofurban and rural development are the main goal of rural inform under new situationand the key to solve the issues of agriculture, farmer and rural area. As an importantpart of countryside infrastructural facilities, rural transport infrastructure is thebeforehand capital of rural economic development, and has a great effect on theimprovement of farmers’ income. The relation between transport infrastructure andeconomic development has been an important field for economist’ research, while theresearch is relatively novel to take the explanatory variables’ endogenous intoconsideration and introduce appropriate instrumental variables from the perspectiveof China’s rural economic development and from both the sides of capital stock andcapital flow of rural transport infrastructure, and the empirical analysis method is alsoan innovation.This paper analyzes the impact mechanism of China’s rural transportationinfrastructure to rural income and the important factors that affect the farmers’ incomerespectively from theoretical and empirical perspectives. On the side of theoreticalanalysis, constructed the expansion of Solow’s economic growth model to analyze theinfluence on farmers’ income and its’ important factors. Then this paper experientialdescribed and analyzed farmers’ income and rural transport infrastructure at thepresent stage in the basis of macro statistics. On the side of empirical analysis, basedon the theoretical analysis, built static and dynamic panel data model by using theyear of1999to2008of30provinces and municipalities(except for Tibet). From boththe short-term effect and long-term effect, analyzed respectively the static panel datamodel with fixed effect and the dynamic panel data by using a more frontier methodof systematic GMM, and compared the short-term effect and long-term effect of ruraltransport infrastructure on income. The empirical study revealed that ruraltransportation infrastructure investment has a positive effect on the improvement ofincome in the short-term, and the positive effect has a hysteresis effect in thelong-term, while the capital stock of rural transport infrastructure has a hysteresiseffect in both the short-term and long-term. Thus, only by perfecting the planning ofrural transport infrastructure construction, rationally adjusting investment extends,increasing the capital stock, can the farmers’ income get a steady increase in a long time.