An Empirical Study On The Relationship Between Farmers’Income And Urbanization Level Of Five Economic Regions In Sichuan Province

The problems of farmers, rural areas and agriculture production have always been attached great importance by the Communist Party of China and the Chinese government. Nearly a decade of "central file no.1", there are nine files were promulgated directly for the problems of farmers, rural areas and agriculture production. It goes without saying that the problems of farmers, rural areas and agriculture production are very significant, while the farmers’ problem is the core problem and the farmers’ income is the core of farmers’ problem. Theoretical research and reality have proved that the urbanization is the important way to increase farmers’ income. There is a close interaction between urbanization and increasing of farmers’ income:urbanization can increase farmers’ income, in turn, with the increasing of income, farmers can promote the development of urbanization through expanding domestic demand, investing, producing and so on.Sichuan Province as an important province in the western region of China, its economic development to a certain extent has become an indicator of the western region. The farmers’ income and the urbanization level are both important economic indicator, they can not only intuitively reflect the economic situation in Sichuan Province, but also are closely related to problems of farmers, rural areas and agriculture production in Sichuan Province. Therefore, it is important to research the relationship between the farmers’ income and the urbanization level in Sichuan Province.In order to make the research more refined and targeted, empirical analysis and comparative study were applied for every city and state in Sichuan Province. The twenty-one cities and states of Sichuan Province can be divided into Chengdu Economic Region, Southern Sichuan Economic Region, Pan-Xi Economic Region, Northeast Sichuan Economic Region and Northwest Sichuan Economic Region, these five economic regions constitute the object of the paper.The paper firstly defined such core concepts as the farmers, farmers’ income, urbanization, urbanization level. Based on the review of existing research and related theories, the paper explained the interaction mechanism between farmers’ income and urbanization. Then, the paper used the data from2000to2012to comparatively analyze the situation of farmers’ income and urbanization level of five economic regions and to find out the hidden reasons.Next, the paper applied the vector auto-regression model and error correction model to empirically analyze and compare the relationship between the per capita net income of farmers and the urbanization level of five economic regions. The conclusion shows that: there is not only a positive and long-term equilibrium relationship but also a short-term dynamic relationship between the per capita net income of farmers and the urbanization level of Chengdu Economic Region and Northwest Sichuan Economic Region. The effects of urbanization level on per capita net income of farmers are obvious. The long-term effects of the urbanization level on the per capita net income of farmers are more significant than the short-term effects. There is no long-term equilibrium relationship between the per capita net income of farmers and the urbanization level of Southern Sichuan Economic Region, Pan-Xi Economic Region and Northeast Sichuan Economic Region, while there is only a short-term dynamic relationship between them. The effects of the urbanization level and the per capita net income of farmers are not consistent in these three economic regions.Finally, the paper put forward the measures from the macroscopic level. To the Chengdu Economic Region and the Northwest Sichuan Economic Region, they should make long-term policies of urbanization development, focusing on increase of farmers’ income by promoting the development of urbanization. To the Pan-Xi Economic Region and the Northeast Sichuan Economic Region, they should make long-term policies to increase the farmers’income based on the increase of urbanization level. To the Southern Sichuan Economic Region, it should not only make long-term policies but also pay attention to short-term policies of the increase of farmers’ income.