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How Chinese Development Effects Chinese Farmer’s Income

Haolun Si, Siyun Wang


The income gap between urban and rural areas is an important issue in macroeconomic research[1]. Since the reform and opening up, although the average growth rate of China's economy has been 9.5%, the low farmers' income is still very prominent.  The irrational structure of the agricultural industry, the underdeveloped economy, and the slow growth of farmers' income are bound to become obstacles to the sustained and stable growth of the Chinese economy. At the same time, although the income of farmers has been increasing in recent years, the growth rate is missing continuously decreasing. This has led to a further widening of the income gap between urban residents and rural households. This fact will not only affect the motivation of farmers' production but also limit the stability of rural development. In February 2021, the State Council, China's cabinet, released a policy paper on modernizing agriculture and rural areas by 2025, confirming China's commitment to helping farmers escape poverty[2]. Correctly and effectively solving the rural economic problems is the key to China's economy getting out of the predicament and achieving long-term stable growth. In this case, we apply an appropriate multiple linear regression model to analyze the historical data and status of farmers’ income. We will explore the main factors affecting farmers’ income. This article focused especially on giving advice about how to increase farmers' income, making corresponding suggestions, and forecasting the future growth trend of Chinese farmers' income.


Urban-Rural Income Gap; Macro-Economy; Farmer’s Income

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DOI: http://dx.doi.org/10.18686/mmf.v6i6.7761