Research On The Impact Of The Rural Public Goods Supply On Peasants’ Income Growth

The issue of farmers’income is the key to the three problems about “countryside,agriculture and farmers”, and is related to the development of rural economy andsocial harmony and stability. And effective supply of rural public goods plays animportant role in increasing agricultural production, improving the farmers’qualityof life, to solve the problem of farmers’ income is also important for thedevelopment of China’s modernization.This paper focus on the topic of farmers’income growth,and discusses themechanism that the supply of rural public goods affects farmers’income growth, andanalyzes the current situation and existing problems of supply of rural public goodsfrom the perspective of supply of rural public goods, then applies multipleregression analysis, cointegration, granger causality test, error correction model toanalyze the relationship between them, in order to put forward some suggestions topromote farmers’ income growth based on the mechanism and empirical test results.Based on the study of mechanism, to analyze the different effects that the ruralinfrastructure investment, rural basic education investment, rural medical healthinvestment, rural investment in science and technology influce farmers’ incomegrowth. In general, rural public goods affect farmers’ income growth throughagricultural income effect, non-agricultural income effect, as well as to the farmers’spending substitution effect. The way that the four inputs affect of farmers’ incomegrowth is interrelated and interaction each other.The empirical research shows that, in the long-term, there is a equilibriumrelationship among the rural medical health investment, rural infrastructureinvestment, rural basic education investment and farmers’ income. And the ruralinfrastructure investment is the greatest impact on farmers’ income growth. In theshort term, compared to the long term, the impact that the supply of rural public goodson farmers’income growth is not significant. After the ADL model analysis, found that thereare different lag phase that the supply of rural public goods affect farmers’ income growth.And the lag phase that rural basic education investment affects farmers’ income growth isthe longest.Based on the mentioned above, policy makers should take effective measures toincrease rural public goods investment, and establish the integration system of urbanand rural public products supply, and construct a multiple mode of rural public goods supply, and establish and improve the supply of rural public goods demandexpression mechanism and perfect the supervisory mechanism to improve ruralpublic goods supply effectively in order to promote farmers’ income growth.