Research On The Effect Of The Efficiency Financial Support For Agriculture On The Transfer Of Rural Surplus Labor

Agriculture as the first industry of national industrial development, is the foundation of national economic and social development. However, agriculture is too weak to achieve sustained, stable and healthy growth, so it is necessary to support agriculture. Since 1958, the implementation of the development strategy of "price scissors" in China, at the cost of agriculture, limited agricultural and rural development. The Chinese government attaches great importance to the issues concerning agriculture, countryside and farmers since the reform and opening up, especially since 2004. The issues concerning agriculture, countryside and farmers act as the central theme of Document NO.1 of the Central Government for 12 years from 2004 to 2015, and the government introduces a series of preferential policies to solve the issues concerning agriculture, countryside and farmers. And financial support for agriculture has also been increasing to expand more than four times from 2004 to 2012 in China. The implementation of these policies plays a positive role in promoting farmers’ production enthusiasm, protecting national food security and increasing the income of farmers. Although the grain output and the income of the farmers has increased year by year, the income gap between urban and rural areas has gradually expanded, and the farmers are still in a weak position.In order to increase their income and improve the quality of life, many farmers move to cities. The famers receiving further education work in the city’s industrial and service sector firstly, and the scale of rural labor mobility continues to expand after the abolition of food stamps in 1990s. Although the scale of rural labor transfer in China has increased year by year, and the level of labor wages continued to rise, the rural labor force is difficult to integrate into the city and enjoy the same level of urban public services, resulting in appearing "labor shortage" phenomenon in many cities.Under such background, how to use the national financial means to establish the long-term mechanism of increasing farmers’ income, and to change the weak position of farmers become an important issue in China. The improvement of agricultural labor productivity is the premise of the industrial expansion and the transfer of surplus labor, and the transfer of rural labor is the key to increase of farmers’ income and change their weak position. Therefore, how to improve the labor productivity through the national financial means, and promote the transfer of rural surplus labor is the key to solve above issues.In this paper, fiscal expenditure for supporting agriculture will be divided by the agricultural production efficiency, and according to the famous push-pull theory, we will discuss the effect of the efficiency financial support for agriculture on the transfer of rural labor force from the countryside "push" angle,and further verify the efficiency fiscal support for the influence of rural labor force transfer mechanism. We will use provincial panel data from 2005 to 2013 to analyze the impact of agricultural machinery purchase subsidy as the representative of the efficiency financial support to rural surplus labor transfer in different regions. In the verification of the mechanism of the effect of agricultural machinery purchase subsidies to rural labor transfer, we will choose two indicators of total power of agricultural machinery and per capita output instead of the efficiency of agricultural production to analyze the transmission mechanism of the agricultural machinery purchase subsidies to the transfer of rural labor force. We argues that the efficiency financial support for agriculture in the agricultural production can improve the efficiency of agricultural production, reduce labor intensity, release more labor, and promote the outflow of rural areas. In the main grain producing areas, the efficiency financial support for agriculture has a positive effect on the outflow of labor force, from the countryside "push" factor for the effect of labor flow is more noticeable, and from the cities "pull" factors is mostly not significant; in other areas, the efficiency financial support for agriculture is not obvious to the rural labor force, "pull" factors from city has become an important factor decided to farmers outflow. Thus it can be seen that efficiency financial support for agriculture can not only improve the efficiency of agricultural production and promote agricultural mechanization and agricultural modernization, but also promote rural labor outflow, to speed up the urbanization process and ease the pressure of "labor shortage". In order to accelerate the process of urbanization and promote rural labor outflow, the government should increase the efficiency financial support for agriculture in the main grain producing areas.