Impact Of Agricultural Products Import And Export On Farmers’ Income

People in academic world have paid broad attention to the relationship between the international trading of agricultural products and the farmers’income in recent years. So researching on its relationship has profound significance in realizing the substantially increase of farmers’income. Shandong province is a big player in agricultural products trading and it accounted for about20%of the total country’s, and the exports of agricultural ranks first in china in the long-term, so it is significant to take Shandong Province as samples to study the effect of the exports and imports of agricultural products brings to farmers’ income.This study includes theoretical and empirical research, and theoretical study focuses on the analysis of the mechanism of import and export trade of agricultural products affecting farmers’income.In theory, import and export trade of agricultural products can enhance farmers’income and reduce farmers’ income.Empirical research is based on the research in theoretical, and tests the direction of action and the level of affect which import and export trade of agricultural products brings to farmers’ income taking Shandong Province as samples.This paper use vector error correction model based on the date from1993to2012, and draw the conclusions as follow.In the long run, agricultural product trading have significant impact on farmers’ income at95%confidence probability. Exports and imports of agricultural products of Shandong both can improve the farmers’income of Shandong Province. Imports trade increased by1%and the income of farmers will increase1.535%and exports trade increased by1%and the farmers’income will increase1.296%.From the point of view of short-term dynamic relationships, the impact of imports and exports of agricultural products in Shandong Province on farmers’ income is not significant. Agricultural products exports of Shandong can improve the farmers’ income of Shandong Province and agricultural imports have a negative impact on farmers’ income.According to theoretical and empirical analysis, the paper put forward countermeasures and suggestions from both exports and imports. In terms of imports, establish early warning and defense mechanisms of agricultural imports, moderate imports of high-tech agricultural products, control the imports of the agricultural products which will have impact on domestic agricultural products; In terms of imports, formulate policies to promote agricultural exports, improve the competitiveness of agricultural products and reasonably determine the target market for exports of agricultural products.