Research On Farmers’ Capital Deepening And Its Role In Promoting The Farmers’ Income

Central Document No. has focused on the " Rural areas, agriculture and farmers"issue for9years, but the income gap between urban and rural areas is still maintainedat about3.2for a long time, China has become one of the countries whose income gapbetween urban and rural areas is the largest. The rural areas’ population accounts formore than half of China’s. But its consumer market is still very small, which hascaused insufficient domestic demand, the transformation of endogenous economicgrowth difficult. It is so difficult to increase farmers’ income that caused the twomajor problems. Farmers’ capital deepening is an important means to solve―thevicious cycle of poverty ", but the current theoretical research in this regard is still ina relatively empty state.This article studies the capital deepening from the perspective of farmers, andproposes the concept of farmers’ capital deepening. At the same time, it estimates thelevel of farmers’ capital deepening since the China’s reform and opening up, and onthis basis study the role of capital deepening in promoting farmers’ income withempirical research method, in order to find the crux of difficulty of promoting farmers’income, and find a breakthrough to increase farmers’ income. Chapter1, Introduction.Analyze the research background and research status at home and abroad of the article.The second chapter describes the theoretical analysis of capital deepening and thegrowth of farmers’ income. Interpret the connotations of capital deepening from thefarmers’ point of view, and analyze the problems in farmers’ capital deepening process.In addition, the chapter also explores how capital deepening affects the income of thefarmers, as well as the effectiveness. Chapter III describes the statistical descriptionof the capital deepening and growth of farmers’ income. First of all, calculate the ruralactual capital stock of the1978-2010per capita net income and GDP. Secondly,analyze capital deepening and its impact on the growth of farmers’ income briefly.Chapter IV describes the empirical analysis of capital deepening in promoting thegrowth of farmers’ income. Firstly, estimate the calendar year rural capital, the outputelasticity of labor by State space form of the variable parameter model. On this basis,estimates the contribution of capital, labor and total factor productivity (TFP) tofarmers’ income. Chapter V describes the recommendations about how capitaldeepening promotes the growth of farmers’ income. Through theoretical and empirical research, we draw three conclusions: Firstly,individual capital deepening is the key factor to achieve rural capital deepening in thefuture. Only enable to cross the investment threshold can farmers realizeself-propelled income growth. Secondly, the quality of capital deepening is a mainsource of the continuing raise of farmer’s income. Thirdly, the positive effect ofcapital deepening on farmer’s income depends on the rate of growth in TFP, for a longtime.