Study On The Relationship B Etween Rural Infrastructure Investment And Farmers' Income In China

Currently,rural infrastructure has become one of the essential parts in the modernization of rural areas in China.It is not only the fundament of agricultural modernization,but also the essential support in improving rural public services and increasing farmers' total income.Those infrastructure is not only important for the three agriculture-related issues in China,but also consistent with the main target of national modernization strategy.As issues related to farmers are the core of the three agriculture-related problems and problems related to farmers' income are the key of issues related to farmers,how to increase farmers' total income could be the priority among priorities.In addition,under the rural revitalization strategy,reducing the weaknesses and enhancing farmers' income could be urgent needs.Therefore,a research regarding the relationship between the investment of rural infrastructure and farmers'income could be valuable.Based oin previous research and theories,the key area of this paper and the mechanism regarding how the investment iin rural infirastructure influence farmcrs'income are introduced first in this papcr.Then,this paper analyzes the current situation of both investments in rural infrastructure and farmers' income,pointing out some potential problems.After that,this paper establishes a panel regression model and panel threshold model using a data set of the period 1997-2016.Empirical results generated by those models are as follow:(1)Investment in rural infrastructure has positive impacts on the increase of both farmers' wages income and household income,but the impact of investment in water conservancy facilities on farmers'wage income is lagged;from the regional difference aspect,investing education is the most effective way to enhance farmers' income in any area;the impacts of investment in other productive infrastructure are different in different area.(2)Regression results from the panel threshold model show that investment in education do not have any threshold effect,investment in water conservancy facilities,electronic facilities and road have single threshold effect.Different investment scale has different impacts on the increase of farmers' income.To be specific,once the investment amount higher than the threshold value,influence of investment in water conservancy facilities and road on farmers' income decrease but influence of investment in electronic facilities on that income increase.Taking these regional differences into account is vital in optimizing both investment scale and investment structure in rural infrastructure.At the end of this paper,some suggestions are provided based on those empirical results.This paper investigates the relationship between the investment of rural infr-astructure and farmers' income,aiming to retest existed results in this research field and optimize the investment strategy in rural infrastructure.Therefore,empirical results in this paper could assist policy makers in reducing weaknesses,breaking the bottleneck of income increase and achieving the rural revitalization strategy.