The Impact Of Agricultural Industrialization On Farmers' Income Inequality

With the development of agricultural industrialization,the mode of agricultural production in China has changed from household contracting to scale management,which improves the labor productivity of agriculture and plays an important role in solving issues concerning agriculture,countryside and farmers,especially in promoting the increase of farmers' income.As China aims at building a well-off society in an allround way,and at the same time,there are requirements for rural revitalization strategy,the growth and quality of farmers' income,as well as the income inequality of farmers have also attracted wide attention from all walks of society.Furthermore,after China's economy entering the “new normal” and facing the economic changes at home and abroad,it has important theoretical research value and practical significance to study the development direction of agricultural industrialization from the perspective of improving the quality of farmers' income and alleviating the income inequality,so as to achieve the agricultural development and stabilize the economy and society.To find out the relationship between agricultural industrialization and income inequality of farmers,this study adopts the research ideas: from theoretical analysis to empirical analysis,and finally putting forward the policy recommendations.The detail steps are unfolded as follows.First step is reviewing the relevant theories and achievements of the existing researches on agricultural industrialization and the income gap of farmers,which lays the theoretical foundation and innovation of this paper.Secondly,defining the concepts of agricultural industrialization and farmers' income inequality will be done,followed by the theoretical and mathematical deduction about the impact of agricultural industrialization on farmers' income inequality from the macro and micro perspective,and put forward assumptions on the relationship between the two variables.Next,this paper constructs and calculates the agricultural industrialization level and the Gini coefficient of farmers' income in each province of China,as well as analyzing the current situation of agricultural industrialization and farmers' income disparity.Then,based on the panel data of 28 provinces in China from 2003 to 2017,the panel threshold regression models and spatial econometric models are established to empirically study the impact of agricultural industrialization on farmers' income inequality.Finally,the research conclusions are summarized and corresponding policy recommendations are put forward.The results of theoretical and empirical studies show that the development of agricultural industrialization is helpful to alleviate the inequality of farmers' income,but there are regional differences.In agricultural provinces,improving agricultural industrialization reduces the income inequality of farmers more obviously,and this positive effect still exists after exceeding the threshold value;while in non-agricultural provinces,the impact of the agricultural industrialization on the income gap of farmers appears opposite trend before and over the threshold value.At the same time,agricultural industrialization has a significant spatial spillover effect,which means that the development of agricultural industrialization can also narrow the income gap among farmers in neighboring provinces.Therefore,this paper puts forward relevant policy suggestions,and thinks that all departments need to continue to promote the development of agricultural industrialization and increase investment especially in agricultural provinces.To ease the farmers' income inequality,it is also advisable to develop agricultural industrialization according to local conditions,adjust the layout of agricultural industrialization,and avoid the resource competitions in the process of developing agricultural industrialization among regions.