The Mechanism Study Of Agricultural Production With Geographical Indications Influencing Rural Economic Development

In Shanxi Province,many agricultural and sideline products with the geographical indications have strong geographical characteristics,and many of these products have hundred years history,but for a long time,due to the lack of industrial advantage and small and scattered planting or breeding scale,many agricultural products are lack of competitive advantage in the market at home and abroad,even more some of the emerging brands of agricultural products are been extruded to a increasingly declining position.Geographical indications in agricultural production and agricultural products market are fall into a vicious cycle which is “actively apply,little use,poor effect”,and the good brand value has not been brought into full play.Therefore,under the background of industrialization,there is a need to theoreticallystudy if the geographical indications have an impact on the development of the rural economy,and what the influence mechanism is.In this paper,the author analyzed how the mechanism of geographical indications promote rural economic development.First,based on the analysis of literature,two paths which indicate how geographical indications affect rural economic development,are summed up in theory: on the one hand,by promoting the formation of agricultural industry cluster,geographical indications increase farmers’ income and promote rural economic development;on the other hand,through the promotion of agricultural brand,geographical indications promote rural economic development;Secondly,the author use OLS regression model and improved WLS model,and macro data in 110 counties of Shanxi province,to empirically analyze the effect of geographical indications of agricultural products to promote rural economic development;Finally using SWOT analysis,from the strengths,weaknesses,opportunities and challenges,the author strategically analyze the development of geographical indications of agriculture industry cluster in Shanxi province,and put forward some specific proposals.The study founds that counties where has geographicalindications of agricultural products have no significant influence on the local farmers’ income and agricultural output;however,the degree of geographical indications of agricultural products industry cluster has a significantly positive impact on local farmers’ income and agricultural production value;through the SWOT analysis of development of geographical indication of agricultural industry cluster in Shanxi province found: the development of geographical indications of agricultural products industry cluster in Shanxi province,has many internal advantages,such as abundant natural resources,low labor costs and large scale of production,but also has many disadvantages,such as the farmers’ backward idea and the lack of interpersonal trust system and institutional trust system.The construction of the rural market,the improvement of transportation infrastructure and water conservancy in Shanxi Province,have provide many opportunities for the development of geographical indications of agricultural industry cluster,but in the process of developing geographical indications of industrial cluster also exists free riding behavior,and the higher market of emerging brands has also brought a certain threat to the development of agricultural industry in Shanxi province.These findings in Shanxi Province at the county level has a certain reference value for determining the agriculturalindustrialization direction,and expanding the brand market competitiveness of agricultural products in Shanxi Province.