A Study About How Rural Fixed Assets Improve Farmers’ Income

Rural fixed assets investment is an important driving force of rural economic growth, and it also has a positive impact on improving the income of farmers. Since the reform and opening up, Chinese rural fixed assets investment has achieved rapid growth in the rural economy and farmers’ income has been greatly improved. However, China’s fixed asset investment in rural areas still faces a series of problems:the economic growth of rural area is not balanced; the fixed assets investment scale is uneven; capital investment mainly consists of financial capital, rural collective and social capital investment is underdeveloped; financial and credit support are also in scarcity; there are still many restrictions on market access; external environment needs improving; investment efficiency needs improving. The problems of China’s rural fixed asset investment have caused bottlenecks to rural economy growth and farmers’ income increase. Currently, our government attaches great importance to the "three rural" issue, especially in the final stage of building a moderately prosperous society, and how to increase farmers’ income has become a top priority for our government. While rural fixed assets investment is not only the foundation of economic development projects in rural areas, but also an important means to increase farmers’ income, this research is carried out under this context. This paper consists of five chapters.Part I:Introduction of the article. This chapter mainly introduces the research background, research status, the purpose and significance of the study. This article demonstrates the macroeconomic situation of rural fixed assets investment and its currently existing deficiencies. In both domestic and international academia, there is not sufficient in-depth systematical research into the mechanism of enhancing the income of farmers through rural fixed assets investment and about how to apply this mechanism to take practical measures to accelerate the "investment-Income" cycle.Part II:Related theory of rural fixed assets investment and farmers’income. Investment in fixed assets is a kind of about assets appreciation without resale or going through the circulation. The form of investment in fixed assets in rural areas includes farmland and water conservancy facilities, agricultural machinery, agricultural science and technology class, lifestyle, characteristic industry category. The funding sources include state budget funds, domestic loans funds, foreign investment funds, and self-financing, other sources of funding. China’s fixed asset investment in rural demonstrate several characteristics:being closely related to the macroeconomic situation, uneven regional distribution, gradual shifts to secondary and third industries.Part III:The mechanism and empirical check of enhancing the income of farmers through rural fixed assets investment. The mechanism of enhancing the income of farmers through rural fixed assets investment includes four stages:"accumulation of rural fixed assets advantage-advantage transforming of rural fixed assets-investments ’pull effect’produces-’investment-income’virtuous circle". By constructing econometric model to fixed asset investment, and based on related data about rural fixed assets investment in forestry, animal husbandry, fisheries and other aspects, and data about the income of farmers released by the National Bureau of agriculture, this article has examined the mechanism of enhancing the income of farmers through rural fixed assets investment. The result shows that fixed-asset investment and farmers’income has a positive correlation. The key of the mechanism is to create off-farm employment opportunities, fixed asset investment in agricultural infrastructure, science and investment in fixed assets, fixed asset investment in rural areas own resources.Part IV:The strategies of strengthening the rural fixed assets investment to enhance farmers’income. Through regression analysis of rural fixed assets investment in the status quo, this paper presents that the rural fixed assets should increase financial support to improve the overall level of investment, develop agriculture, forestry, animal husbandry and fishery sectors to promote rural economic development patterns, encourage rural introduction and establishment of agricultural products processing enterprises, create non-farm employment opportunities, increase fixed assets investment in agriculture, forestry, animal husbandry and fishery to stabilize farmers’income, establish a sound legal and policy rural fixed assets investment, and optimize internal and external environment of rural fixed assets investment.Part V:Conclusions. This chapter summarizes the study in this article, and notes that the question as to impact rural fixed assets investment has on the farmers’income is professional, complex, long-term, empirical, and its study focus varies at different periods, and therefore it is always a new subject. Hopefully this article can guide the rural development and poverty elimination, and promote the realization of a better-off society.