Effects Of Reform Of County Directly Administrated By Province On Farmers' Income

Since China's reform and opening up,there is a rapid development in the economy and the residents' living standards have improved significantly.On the one hand,the administrative system of our country is in dynamic adjustment,with the development and improvement of market economy system,the drawbacks of "City managing county" system gradually emerge;On the other hand,the income of farmers in China has been greatly increased,but the income gap between urban and rural residents has been expanding.In this context,more and more provinces are experimenting with the reform of the provincial system.This county system reform is under the framework of fiscal decentralization in China,one of the goals is to balance urban and rural development,help poverty-stricken counties out of poverty and increase farmers' income.Based on the fiscal decentralization policy,this paper explore the effects of reform of county directly administrated by province on farmers' income.In this paper,firstly there are theories of fiscal decentralization and research at home and abroad.Through the different angle of view,using different data and methods,various scholars obtain many conclusion about the distribution of income in fiscal decentralization,which provides a theoretical support and reference for this article research.Secondly,we analyze the present situation of the farmers' income in our country and introduce two major forms of the reform in China,including the positive effect and existing problems.Meanwhile,we make a statistical analysis of farmers' income in the national and regional division,and compare farmers'income in some individual pioneer counties.Based on the above analysis,we use a unique panel dataset of counties for the period 2000—2011 to analyze the effects of reform of county directly administrated by province on farmers' income by difference—in—difference(DID)method.This paper concludes that the impact of this reform on the farmers' income growth is not good.The impact is large in high-income areas and relatively small in low-income areas.The fiscal system reform directly increases farmers' income,while the economic management delegation has no apparent effect.In addition,county with low degree of fiscal decentralization and agricultural counties benefit a lot from this policy.To evaluate the dynamic policy,we found that high income group was made to improve income.There is no significant growth in medium high income and middle-income groups,and the effect is not obvious on the low-income group.Therefore,we put forward some feasible policy suggestions for the future reform in our country.