A Study On The Agricultural Products Trade Openness And The Rural Household' Income In China

Since China becomes a member of WTO,the agriculture has been gradually integrated into the world economic system in the context of economic globalization.At the same time,the scale and the structure of foreign trade of agricultural products has undergone a lot of changes and significant regional differences have been seen.the agricultural product trade has made great contributions to bring agricultural product export earnings for the rapid growth of the rural household' income in china."Agriculture,Countryside and Farmer" issues are always key to building a moderately prosperous society in all respects.The report of the 18th CPC National Congress set the goal of doubling the per capita income for residents in 2020.With China's economic development has entered a new norm,national economy and foreign trade of agricultural products growth is slowing,the rural household' income can keep sustained growth,to achieve the goal of doubling revenue remains uncertainty.Therefore,the study on effect of agricultural trade on the rural household' income is of great significance.First,the rationale and the literature of the correlation between trade openness of agricultural products and the rural household' income were reviewed to analyze the mechanism of the mutual effects of agricultural products,export trade openness and the rural household' income.Secondly,the situation of the agricultural product trade openness and the rural household' income in the past 20 years was analyzed.On one hand,the trade volume of agricultural products and the rural household' income have been increasing concurrently.On the other hand,the trade deficit of the agricultural products continues to expand.The regional imbalance and the regional income gap among the rural households are widening.The relationship of China's agricultural products trade openness and the the rural household' income was studied with the panel data between 2002 and 2012.Based on the Cobb Douglas production function,the empirical analysis model of the relationship between the export trade of agricultural products and the the rural household' income was built.To explain the influence of agricultural products upon the rural household' income from nationwide and regional perspectives,material capital per capita,human capital and technical progress of agriculture were introduced into the model.The results of the empirical test show that The degree of dependence on import trade and export trade of agricultural products,the rural material capital per capita,rural education level and technical level of agricultural production impact on the the rural household' income positively.The contribution of agricultural products trade to the growth of rural per capita net income in eastern China is quite different from that in the central and western China.Both the degree of dependence on import trade and export trade in the central and eastern China impact on the the rural household' income positively.In western China,both the degree of dependence on import trade and export trade in the central and eastern China impact on the the rural household' income negatively.Rural material capital per capita impacts on the rural household' income positively in all the regions.The impacts of human capital on the the rural household'income in all regions are positive but not significant in central and western China.Finally,based on empirical analysis,countermeasures and suggestions about agricultural product trade were made in order to improve the income and the welfare of the rural households.