With A Decrease In The Proportion Of Agriculture Study On The Relationship Between The Farmers' Income Growth

Since the reform and opening up, China accounted for a significant proportion of the total economy of traditional agricultural country from an agricultural economy gradually developed into a complete range of modern industrial and service sector diversification modern economy countries. From the development of an economically backward agricultural country, China developed into a complete industry categories, the world’s second largest economy. The changing industrial structure is a sign of China’s rapid economic process. According to the theory of industrial structure, the national economy can be divided into primary industry, secondary industry and tertiary industry. The economic system change and technological advances have led to China three times the adjustment of industrial structure:On the one hand, the adjustment of industrial structure by the re-configuration of the elements of a rational division of labor and labor to improve the marginal output of the elements; On the other hand, elements of the marginal output of secondary industry and tertiary industry is higher than the elements of the marginal output of the first industry, the proportion of secondary industry and tertiary industry in GDP rising, and the firstthe proportion of industry in GDP is declining. At the same time, the improvement of agricultural output to increase the agricultural income of farmers. China is a typical "urban-rural dual economic structure". According to the theory of Lewis’s dual economic structure, the rural surplus labor has been transferred to the modern sectors of the economy of the city before the Lewis turning point "is reached. Because the second and tertiary industries for labor higher wages than the primary industry, the transfer of rural labor to urban modem sector of the economy. The rural labor force in secondary industry and tertiary industry can get a higher income, farmers’ per capita net income is growing, also the farmers’ income structure changes. The increase in government revenue and rapid economic development also contributed to the growth of farmers’ of metastatic income and property income. With the growing per capita net income of farmers, farmers’ income structure changes. However, because farmers’ income growth lagged behind the growth rate of the income of urban residents, the gap between rich and poor in China is increasing. Hower "three rural issues" is an important aspect of economic and social development. Therefore, to study specific factors that affect farmers’ income growth is of great significance. For the problem that how the decline in the proportion of agriculture impacts on farmers’ income, this paper develops an analytical framework to study this problem. Farmers’ income growth at this stage is not only dependent on the agricultural industry, and also depends on the development of non-agricultural industries. In order to achieve the modernization of agriculture and increase farmers’ income, we must continue to increase investment in rural education, and promote non-farm employment of rural labor transfer.In this article the auther searched research literature in the past. Combination of economic operation in China’s reform and opening up the specific conditions and farmers’ income changes on the basis of previous research, using the theory of industrial structure adjustment and economic growth theory, the auther explored relationship between decline in the proportion of agriculture and farmers’ income changes and attempted to establish the agricultural decline in the proportion of farmers’ income growth mechanism.The search shows that the proportion of agriculture in GDP declining and the proportion of secondary industry and tertiary industry in GDP improve the agricultural output and farmers income by increasing the production of factor inputs. Accumulation of factors of production and the rational allocation of elements promote the output of the rural labor force and wage income of farmers. Theoretical analysis shows that:the proportion of agriculture decline is an important factor to promote the growth of farmers’ income. Summarizing data of China’s economic growth,data of the industrial restructuring of the relevant and data of farmers’ income,carry out a test on interaction mechanism between the decline in the proportion of agriculture and farmers’ income increasing. The empirical test results confirm the theoretical analysis of the judgment. The conclusions show that the decline in the proportion of agriculture promotes farmers’ income. In order to achieve the modernization of agriculture and increase farmers’ income, we must continue to increase investment in rural education, and promote non-farm employment of rural labor transfer.In the last part of this article,in order to continue to push forward industrial restructuring and economic growth, and promote an increase in farmers’ income and narrow the urban-rural income gap, the auther provided some policy recommendations:(1) Promote the industrial development enough to the scientific and technological content, high labor productivity of industry change;(2) Increase investment in rural education, and continue to promote the transfer of rural agricultural labor to the modern sectors of the economy of the city;(3) Increase efforts to support township enterprises, and improve the level of development of township enterprises;(4) Improve the current system of income distribution to narrow the urban-rural income gap;(5) Pay attention to develop more and more obvious to the technological advances of modern agriculture direction.