The Impact Of Urbanization On Farmers’ Income

The urbanization promotes the effective transfer of rural surplus labors,improves the countryside’s mode of production and management,increases the channels of farmers’ income, promotes the countryside’s lifestyle. So we must insist to improve the level and focus on the quality of urbanization development.This article studies for the effects of the urbanization on famers’ income mainly from two aspects: the level and the quality of urbanization. Firstly, It discusses the impact of urbanization level on farmers’ income based on the Dual Economy Structure model from the aspects of land use, labor transferring, agricultural product sale and rural education. Then it discusses the impact of urbanization quality on famer income based on the gathering and diffusion theory from five aspects: economy development, social development, infrastructure, resources and environment and urban-rural integration.Secondly, It focuses on 30 provinces from the east, central,and west of the urbanization and farmers’ income, compares and analyzes the differences of the urbanization level and farmers’ income; adopting the Entropy Method to measure the urbanization quality of each province and analyzing the causes of the differences of the urbanization quality from Sub-system among these areas.This study result shows that the urbanization quality on the east is much higher than that on the central and the west. It is necessary to improve these area’s economy if we want to change the situation. In the empirical study, the paper used the Panel Data Model to stuy the effects on farmer income by the urbanization. The result shows that urbanization has a larger gap between farmers’ income in different areas. For example,for the east area, it shows that the effects on farmers’ income by both the urbanization level and the urbanization quality are nearly in balance status. However,for the central or the west, it is obviously a better way to increase farmers’ income by improving urbanization level than by improving the urbanization quality. At the end of the paper, it puts forward some related policy proposals about how to improve the development of the central and the west and narrow the gap among the areas.