The Efficiency Of Capital Allocation And Farmers' Income Regional Differences In Rural Areas

Capital investment in rural areas has long been considered to promote rural economic development and improve farmers'income. Lewis's dual economy theory and rural development model advocated by Schultz consider the development of capital investment as a core element. In recent years China increases capital investment in rural areas, but the effect on farmers'income growth appears unsatisfactory, to some extent, even expands the regional differences in farmers'income. In order to analysis of efficiency in the allocation of funds to rural areas and farmers'income differences, first of all, according to the premise that capital into the rural areas a promotes rural economic growth, I select1999-2009data from30provinces, choose per capita fiscal expenditure, per capita rural credit investment, per household investment in fixed assets and per capita investment in rural education for the input indicators and the primary industry value-added, farmers'per capita net income and urbanization for the output indicators. I use data envelopment analysis (DEA), the returns to scale constant C R model variable returns to scale BC2model to study the technical efficiency, pure technical efficiency and scale efficiency of funds in rural areas. Then, in order to achieve a more intuitive impact of rural farmers' income, keep constant input indicators, adjust operating income families, wage income and property income and transfer payments for the output indicators, per primary industry value-added, urbanization, urban-rural dual structure, regional economic openness as an environment variable, remove the environment variable and random disturbance term, adapt DEA three-stage method to analysis the relationship of regional differences in farmers' income and rural capital allocation efficiency. Finally, in order to identify the impact for differences capital allocation efficiency in eastern,central and western rural regions, according to the relevant theoretical research and practical situation, use rural infrastructure, urban-rural dual structure, the level of human capital in rural areas, rural financial development level and the level of regional economic development as independent variables, technical efficiency as dependent variable, the1999-200930provinces divided into three regions for the three regions, analysis the factors that affect the efficiency of capital allocation in rural areas with the tobit model.Full text draws the following main conclusions:First, the efficiency of capital allocation is significant difference in East Midwest rural areas. The technical efficiency and pure technical efficiency levels of capital allocation in eastern and central rural areas are higher than that of western areas. The capital allocation efficiency of technical efficiency and pure technical efficiency in the western region are dual low. Allocation of funds in rural eastern region generally at the stage of decreasing returns to scale, industrial transformation and upgrading of rural are imminent, central and western regions generally at the stage of increasing returns to scale, capital investment is quite effective.Second, capital investment has a relatively high efficiency in the farmers' income of rural eastern and central regions; the result was not significant in the western region. Because of the efficiency differences of capital investment and the cumulative effects in east, central and western rural, to a certain extent, the regional differences in farmers'income have been expanded, and this effect is particularly prominent reflected in the western region. As the capital allocation efficiency levels of the central region were significantly increased, the gap between the eastern and central performance is more in total funding, while the gap between east and west is influenced by both the efficiency and financial impact.Third, increase investment in rural infrastructure and enhance regional economic development help to improve the efficiency of capital allocation in rural areas, urban-rural dual structure is a serious impediment to rural capital allocation efficiency. The development of rural finance promotes capital allocation efficiency and increases farmers'income in Eastern rural areas while that of central and western rural regions inhibits the efficiency of capital allocation and farmers'income. The regression results of raising the level of human capital in rural areas show inefficient in the allocation of funds and farmers'income in rural areas. There are inconsistent results with theoretical expectations, probably due to short-term effect not significant, or there is a deviation on the index assignment.Fourth, how to improve the efficiency of capital allocation and regional farmers'income level in rural areas, the key is:First, increase investment to speed up rural infrastructure, especially in central and western regions where the rural infrastructure is relatively backward, improving rural infrastructure is more efficiency for the allocation of funds and farmers'income growth. Secondly, improve the rural financial market to meet the needs of multi-level structure. According to the different needs of rural areas in three regions, develop non-formal rural financial development and the microfinance institutions to expand multi-channel financing and strengthen the rural financial regulation. Then, although the regression results are not significant, increase investment in rural education and improve the rural education environment, to enhance human capital to support rural economic development and increase farmers'income. Finally, change the urban-rural dual structure, gradual elimination of the household registration system, realize urban and rural unified development, relax movement of labor, and promote social harmony.