Study On The Structural Impact Of Urbanization And Fiscal Expenditure On Farmers' Income

Poverty alleviation and reduction,as an important aspect of of the construction of China's Well-off Society in an All-round Way,the country has once again stepped up efforts to lift and reduce poverty since the Nineteenth National Congress.The goal is to achieve full poverty alleviation by 2020.The main targets of poverty alleviation are the large number of farmers living in rural areas,especially the low-income farmers.The crucial moment for China's great strategy of poverty alleviation and reduction is now coming.Therefore,how to promote the increase of farmers' income has become a focus issue in both theoretical and practical field.Since the reform and opening up policy,the absolute scale of peasant income has grown by a large margin.However,how to find out from the structural aspect that the policy of promoting peasants' income increase has become an urgent issue.In practice,the income of Chinese peasants mainly comes from agricultural operations,migrant workers,government transfers,and land rents.The increase in these incomes depends on urbanization and financial support.The "push-pull" theory,the dualistic structure theory,and the theory of population mobility model show that urbanization is the key path to increase farmers' income;public goods theory and externality theory show that finance is indispensable for increasing farmers' income.Urbanization has a direct impact on farmers' wage income,property income,and transfer income,and has a greater indirect impact on operating income,while fiscal expenditure on agriculture supports has a direct effect from the aspects of peasant wage income,operating income,and transfer income.The process of urbanization in Shandong province has developed rapidly.At the same time,the wage income of farmers has also grown rapidly,gradually becoming the highest proportion of farmers' income.However,the scale and proportion of wage income have been slowly increased in the past five years.With the impact of multiple factors such as the reduction of surplus agricultural labor force,the slowdown of economic development,and industrial transformation,the employment of migrant workers and the growth of wage income are affected.In recent years,the scale of fiscal revenues for agriculture,forestry and forestry affairs in Shandong province has been weakened,especially in 2016 when the overall scale has been reduced.Compared with the national situation,there is still a certain gap between Shandong's financial expenditure on agriculture.In terms of farmers' income,the proportion of income received by farmers from the primary industry is becoming less and less.Although the wage income accounts for a relatively large amount,the growth rate has slowed down obviously,and the overall growth of farmers' income in Shandong Province is under pressure.In order to better find out the impact of urbanization and fiscal expenditure on farmers' income composition,this thesis aims to form a mathematical model of the labor force changes under the two sectors constructed to find two main components of farmers' income-wage income and operating income-in the labor force transferring the principle of growth in the transition from rural to urban areas.According to the results of the mathematical model derivation,it can be found that the farmers' operating income is mainly affected by the comprehensive technical level of agriculture and the fiscal expenditure on agriculture in the process of urbanization.On the one hand,urbanization weakens farmers' demands for operating income through substitution effects.On the other hand,urbanization can have a positive impact on operating income by expanding the scale of operations and increasing the demand for agricultural products.Wage income is mainly influenced by the urbanization rate,and disposable income of urban residents has a pull effect on the income of rural residents.Based on the results of the mathematical model derivation,using the panel data of 17 prefecture-level cities in Shandong province from 2007 to 2016,the model of individual fixed effects was established for the farmer's income constitute which are operating income,wage income,property income,and transfer income with the urbanization rate,disposable income of residents,comprehensive technical efficiency of agricultural production,and fiscal expenditure on agriculture.The results showed that:The fiscal expenditure on agriculture and the comprehensive technical efficiency of agricultural production contribute to the improvement of farmers' operating income and there is a reversed substitution effect on sexual income;disposable income and urbanization rate of urban residents contribute to the growth of wage income for farmers;fiscal expenditure on agriculture has weaker lagged effects on wage income;urbanization can directly promote farmers.The increase in property income;the urbanization rate and fiscal expenditure on agriculture support the growth of farmers' transfer income.It also measured the efficiency of urbanization and financial support for agriculture in 17 prefecture-level cities in Shandong province.It was found that there was a Matthew effect in the process of promoting farmers' income growth,manifesting itself in the urbanization of cities with high urbanization rates.The impact of increasing farmers'income is even more pronounced,and agricultural developed urban fiscal support expenditures have a greater impact on farmers' income.Based on the structural impact of urbanization and fiscal expenditure on farmers'income,the suggestions of the new era to further promote the increase of farmers'income are as follows.To promote farmers' income from operating income and urbanization level:cultivate characteristic agglomeration towns and guide migrant workers to return home and entrepreneurship;financial support for agriculture:ensure the scale and efficiency of financial support for agriculture,and promote agricultural modernization.To promote the increase of farmers' wage income and urbanization level:maintain the ability of urban communities to integrate resources and increase the capacity of county towns to absorb labor;financial support for agriculture:promote the reform of the agricultural supply side and promote the development of integration of secondary and tertiary industries in rural areas.To promote the income of farmers'property income and the level of urbanization:consolidate and improve the basic rural land system,and cultivate a mature rental market.To promote the increase of farmers'transfer income and financial support for agriculture:balance the income gap between urban and rural areas,and co-ordinate the overall situation of provincial development.