The Impact Of The Investment For The Integrated Agricultural Development Project On Rural Household Income

The rural revitalization strategy is a major national strategy made by the Communist Party of China in response to the work of "rural issues",and it is an inevitable requirement for achieving the two "one hundred year" goals and the great rejuvenation of the Chinese nation.The Integrated Agricultural Development Project is a special financial support fund dedicated to improving the comprehensive agricultural production capacity.Since its implementation,the Integrated Agricultural Development Project has made outstanding contributions to the transformation of low-and medium-yield fields,construction of high-standard farmland,promotion of agricultural industrialization management,and the creation of agricultural advantageous industrial clusters,which have effectively improved the level of agricultural and rural modernization,significantly improved farmers’ quality of life and greatly improved farmers’ satisfaction and happiness index.We can understand the effect and transmission path of fiscal investment in the agricultural field by exploring the mechanism of investment for the Integrated Agricultural Development Project on farmers’ income.This is also conducive to optimizing the investment efficiency of fiscal funds and social capital,ensuring the steady implementation and solid progress of the rural revitalization strategy,and achieving the goal of increasing farmers’ income.Based on the summary of the existing literature,this paper takes investment for the Integrated Agricultural Development Project and farmers’ income as the research object,focusing on the time-lag effect of investment for the Integrated Agricultural Development Project on farmers’ income and its internal mechanism.In order to systematically analyze the impact of the Integrated Agricultural Development Project on farmers’ income,this paper builds a static panel model and a dynamic panel model and uses fixed effects and random effects for parameter estimation.Based on an in-depth analysis of the investment situation and implementation effect in the past decade,this paper proposes three paths for the Integrated Agricultural Development Project to affect farmers’ income,and conducted empirical tests based on panel data from 31 provinces(cities and districts)in China from 2006 to 2016,which initially explains the internal mechanism of investment for the Integrated Agricultural Development Project on farmers’ income.In terms of research methods,this paper uses fixed-and random-effect for parameter estimation.Also,to solve the model endogenous problem and obtain consistent and effective parameter estimates,this paper uses the instrumental variable method and the system generalized moment estimation(GMM).The main conclusions of this paper are as follows:(1)The investment for the Integrated Agricultural Development Project has a very significant positive impact on farmers’ income,and the investment has a long-term impact on farmers’ income.The current investment will have a positive impact on farmers’ income lagging one period and two periods.It means that there is a certain time lag in the effect of investment for the Integrated Agricultural Development Project on increasing farmers’ income.(2)The investment for the Integrated Agricultural Development Project has realized the policy effect of promoting farmers’ income increase by affecting agricultural output,non-agricultural income and employment structure.Among them,land management project has improved the comprehensive agricultural production capacity,promoted the increase of grain production,and realized the growth of farmers’ operating income.On the one hand,industrialized management projects can provide farmers with more jobs,realize share dividends for some farmers,and broaden farmers’ income-increasing channels and increase the growth of farmers’ wage income and property income.On the other hand,it can change the traditional "small farmer" production model,improve agricultural production efficiency,release rural labor force,and promote farmers’ transfer to secondary and tertiary industries,thereby increasing farmers’ wage income.The Integrated Agricultural Development Project has promoted the redistribution of social wealth through the above three methods,and has achieved a continuous increase in farmers’ income.(3)Farmers’ education level and urbanization rate are also important factors affecting farmers’ income,and the total sown area of crops has a significant negative impact on farmers’ income.This shows that it is effective to increase farmers’ income by continuously advancing urbanization,strengthening farmers’ popularization of scientific knowledge and vocational skills training.But the efficiency of planting industry is low,the higher opportunity cost of agricultural production and the cost of time restrict the income of farmers to a certain extent.