The Impact Of Agricultural Products Trade On The Regional Gap Of Farmers’ Income

With China’s trade openness of agricultural products constantly increasing, the issue how to promote the growth of farmers’income and narrow the regional gap of farmers’ income has become a new hot spot in academic circles. Previous research more concentrated in the influencing factors of the growth and gap of farmers’income. However, the studies on the factors impacting the regional gap of farmers’ income are not so perfect, and have not yet formed a widely recognized research system. In recent years, some scholars gradually begin to turn their attention to the openness, trade liberalization, and even the trade of agricultural products. From all these views, they try to find the rational explanation for various trends of rural residents’ income. This paper tries to explore the impact on the rural residents’income gap between different regions from the perspective of agricultural product trade.On the basis of reviewing and analyzing related literature, theories and transmission mechanism, this paper uses the time series data from1987to2010to analyze the relationship between agricultural trade and farmers’ income gap between different provinces. Subsequently, we use the1995-2010panel data to discuss the relationship between agricultural trade and farmers’ income gap in different provinces. The paper references the mathematical model of Spilimbergo and Sk’ezely(1999) and combines it with our country’s actual situation to adjust the model. The model introduces in agricultural trade, physical capital, human capital land resource and rural economic development, such as to explain the regional farmers’income gap.In time series model, the empirical results show that in the long run, there is a long-term stable equilibrium relationship between the trade of agricultural products and income gap of rural provinces. The development of agricultural products trade significantly expands the income gap between rural provinces in China; in the short term, the agricultural products trade restrains the development of rural internal income gap between the provinces, but the effect is not significant. In panel data model, the empirical results show that in the control of effective factors, agricultural products trade increases the rural income gap within internal provinces in China. The income gap in the eastern area rural is not enlarged significantly, but the central and western region is very significant.Finally, in accordance with the conclusions of empirical results, on the basis of the significance of the development of agricultural trade, this paper gives a few policy recommendations about how to treat the regional income gap between rural residents.