A Comparison Of Wealth Effects Of Mineral Resource Exploration And Agriculture In Xinjiang

Mineral resources development and agricultural production are the two pillar industries in Xinjiang’s economic development, but because the two have different resource owners, different developers of resources, and different interest relationship among the central government, local government and the local residents, both models have a wealth effect significantly different, thus the extent of the impact on the local economy are not the same.Participants of mineral resources and agricultural production distribution of wealth can be summarized into three categories, namely government, business and residents, but due to the production mode of operation, the nature of products, income distribution mechanism of the two industries are quite different, three types of income distribution of wealth case participants have gained significant difference.Based on the corporate earnings, government revenue and residents’ disposable income empirical analysis that:Development of mineral resources in the wealth effect arising in mining enterprises as the actual control of mineral resources development deserve to get more than their share of the wealth, mainly due to accounting policy is not reasonable, less resource‐denominated assets, as well as lower resource taxes and security spending, which should bear part of the cost is externalized, and the distribution of wealth to a relatively small share of residents. In addition, due to the continuing rise in the price and a lot of exploitation of mineral resources, more taxes will bring greater improvement district revenue, and GDP will quickly upgrade in a short time, but economic development will be inhibited in the long term.In the wealth effect generated by agricultural production, the agricultural class company received a share of less wealth; while for rural residents, because it can no rent to use the land for agricultural production process and other core resources, higher investment yields of agricultural producers, thereby obtaining a larger share of the wealth; Since the Chinese government abolished the agricultural tax, and gives agricultural production and agricultural companies financial, taxation, loans subsidies and support in all aspects, the government gained revenue from agricultural production has been very little. Mineral resources development and agricultural production wealth effect model also has one thing in common: the participants in the distribution of wealth in various industries, who controls the core resources of the industry, who will get higher returns.