Study On The Influence Of FDI On Farmers' Income In Anhui Province

With the gradual progress of China's economic globalization,it became the largest foreign investment country exceeding America in the world in 2002.when FDI poured into China,it had a profound influence for China's long-term economic development.On the one hand,FDI in China ease the shortages of China's foreign exchange and capital,on the other hand,it has a profound impact on China's urban and rural residents' income.The relationship between FDI and resident income has been researched early by scholars,but,there is not nearly study of the concrete relationship between FDI and peasant income,so this text will be launched on this,which will take An Hui for example.Analyzing the current situation of foreign direct investment in Anhui Province and farmers' income by analysts pointed out that foreign direct investment in Anhui existed.Using empirical analysis,from 1998--2014 year sample period,the use of vector autoregression(VAR)model modeling analysis.The main empirical conclusions of this paper:(1)co-integration test results show that foreign direct investment and the income of farmers cointegrated,namely the existence of long-term equilibrium relationship between FDI and farmers' income;(2)Granger causality test showed that only one-way causal relationship between them,namely to promote farmers 'income increase FDI inflows,FDI inflows can increase farmers' income;(3)the impulse response function shows that in the current period to a positive foreign direct investment after impact,the per capita net income of farmers,although there have been fluctuations in the trend,but the effects are positive,and the magnitude of the impact is large,relatively long duration;(4)using the variance method,we can see that foreign direct investment predict the mean square error of farmers 'income has a growing variance contribution rate that foreign direct investment on farmers' income increase explain gradually increase the intensity.According to the status of foreign investment and the income of farmers in Anhui,as well as the conclusions drawn from the analysis,this paper presents the corresponding countermeasures in order to better use FDI to promote countermeasures and suggestions Farmers Income.