Research On The Effect Of Total Factor Productivity Of Agriculture On Urban And Rural Income Gap

Along with the advancement of industrial integration and competition of the market,our country is gradually into a high and uneven distribution of income,high stocks and slow growth,backward production capacity and advanced technology,and other structural contradictions of the new normal economy,and in the midst of this restriction are very important factors of residents' consumption growth which is income inequality and imbalance.As is known to all,investment,consumption and export is the troika of the national economy,which have great significance to the economic development,the expansion and transformation of consumption has become the key factor of our country to get out of the middle-income trap.However,the expansion and transformation of consumption can not only stay on the supply-side reform,we must focus on reducing the gap between the rich and the poor,and alleviating the inequality of the capital remuneration of the industry.Aiming at the problems,our country puts forward on promoting agricultural industrial chain construction,optimize the structure of agricultural production,improve the efficiency of agricultural production and a series of agricultural supply-side structural reform policy,the substance of these measures are improving the agricultural total factor productivity.So,the key factor to promote the development of future economy should be the improvement of the agricultural total factor productivity,which profoundly affects the urban-rural income distribution in our country and narrows the income gap between urban and rural areas.Therefore,on the basis of the total factor productivity theory and economic theory,through the analysis of Yangtze river delta urban agglomeration during the year 2006 to 2015 about the income gap between urban and rural areas,and on the basis of using the mixed effect model to validate the agricultural total factor productivity's positive influence to income gap.Accordingly,we should improve the agricultural total factor productivity and narrow the income gap between urban and rural areas.This paper uses theoretical analysis and empirical research to demonstrate the theme.The first part is the theoretical part.In this part,this article pay close attention to the agriculture industry chain extension,agricultural economic production structure,the acceptance level of advanced technology,reasonable degree of production resources,etc,which in order to discuss how to promote agricultural industrial structure adjustment of agricultural production efficiency and how to safeguard peasants to share agricultural value-added benefits.The second part is the empirical part.Based on the panel data of 26 cities from the year 2006 to2015,using mixed effect panel model to analyze the effects of total factor productivity on urban and rural income gap.Firstly DEA-Malmquist index method is used to measure totalfactor productivity,such indicators like pure technical efficiency,structure of integrated efficiency and Malmquist index changes can be seen as the factors of the technical level and factor allocation efficiency,what's more,we can compare cities' agricultural total factor productivity levels in different areas of Yangtze river delta.Secondly selecting the double logarithm theoretical model as the basic model to analyze the effect of the difference between urban and rural human capital and total factor productivity on the income gap between urban and rural areas.Thirdly basing on mixed effect model to measure and inspect the growth of total factor productivity,urbanization level,human capital structure,infrastructure investment,foreign trade and other factors' effect on the mechanism of shrink the income gap between urban and rural areas.The empirical result shows that the total factor productivity of agriculture under the inspection level of the significance of 1%,which obviously under negative correlation effect,thus the improvement of the agricultural total factor productivity significantly narrow the gap between the income of urban and rural residents in the region.Based on the theory and empirical study of the effect of total factor productivity on the income gap between urban and rural areas,this paper puts forward three suggestions.Firstly,we should raise the level of agricultural modernization and promote the adoption of advanced technologies in agricultural production.Besides we may spare effort on setting up a professional agricultural production research institution to transform advanced production scientific and technological achievements into new point for sources of economic growth.Last but not least,we have to increase human capital investment and improve the mechanism for human mobility.