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Influence of Degree of Restriction on widening Channels of Increasing Farmers’ Income: Example from Leshan city in Sichuan Province

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Author(s): Yong WU

Journal: International Business and Management
ISSN 1923-841X

Volume: 3;
Issue: 1;
Start page: 228;
Date: 2011;
Original page

Keywords: Quantitative analysis | Rural per capita net income | Multivariate-linear regression | Urbanization rate

ABSTRACT
China serves as a typical agricultural country and its agricultural population plays a leading role, so it is absolutely necessary to solve its farmers’ income problems timely as in many other agricultural countries. In this paper, a proper quantitative analysis of this problem was done to lay out both the causes and a set of affordable solutions. Firstly, rational evaluation indexes which can represent the essence of famers’ income problems were summarized, analyzing their influence on widening channels of increasing farmers’ income qualitatively. Next, to reflect the influence of the degree of restriction on widening channels of increasing farmers’ income, a predicting model was constructed by using multivariatelinear regression, adopting backward-elimination analysis and integrating with Eviews3.0. Moreover, the model showed that urbanization level, scale of agricultural production and degree of putting value on supporting agriculture in finance were closely linked with farmers’ income in Leshan city. However, urbanization level was the most significant factor. If the urbanization rate raised 1% in Leshan city, its rural per capita net income can increase 51-yuan. So raising urbanization rate can be a long-term goal for increasing farmers’ income in many underdeveloped areas.Key words: Quantitative analysis; Rural per capita net income; Multivariate-linear regression; Urbanization rate
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