Investment In Public Services That Affect The Mechanism Of Rural Residents’ Income And Empirical Research

Since the reform and opening up, the rapid growth of China’s total economic output has made tremendous achievements. With the development of the total economy, the economic efficiency issues are slowly resolved, it also brings great challenges to China’s development, especially issues of economic development and people’s livelihood balanced relations. As the "three rural" core issues increase the income of rural issues have also been the national government, social as well as academic research as an effective way to achieve social justice, promote the people’s livelihood construction. Proposed in 2014 the "new normal" concept, noting China’s "steady growth, promote reform, structural adjustment, improve people, anti-risk" in the current economic situation should want, which is to improve people’s efforts to solve the problem of social justice. From the perspective of public financial investment, investment in public services is a basic measure of fair social scale, and therefore, this article from the perspective of public finance investment choice to study the effects of public service investment income of rural residents.Paper selected years 2007-2013 provincial panel data, from a theoretical and empirical point of view of the impact of public investment in services for rural residents’ income.First, from a theoretical point of view, mainly from investment to improve public services in rural areas of human capital, reduce agricultural production costs, the initial development of the rural economy and income re-distribution of these four aspects to analyze the impact on farmers’ incomes. Secondly, based on the country’s provincial panel data, build static and dynamic panel models, empirical analysis of the impact of public service investment income of rural residents by comparing the estimated result, the panel found that the estimated results of the static and dynamic panel data model, data model is consistent that investment in education, investment in agriculture, forestry and water affairs, urban and rural community investment, investment in health care, social security and employment are all factors into ruralresidents’ income, and the impact on the income of rural residents are positive effect, different public service investment projects varying degrees of impact on the income of rural residents.Therefore, conclusions of this study indicate that the major projects of public services is an important factor to increase rural incomes, while improving rural incomes will also promote the improvement of the quality of public services.Impact on investment in public services based on income of rural residents is more complex, combined with China’s "Twelfth Five-Year Plan of public service", perfect the mechanism of investment in public services, focusing on educational equity, enhance the level of social security, and improving agricultural comparative effectiveness, promote rural incomes increase.