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Research on Farmers’ Income Increase Under the Distortion of China’s Factor Market

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  • Guosong Wu

Abstract

At present, the vast majority of Chinese farmers’ income comes from factor income. The distortion of factor market affects the sustainable growth of farmers’ income and the optimization of income structure to a certain extent. The development of factor market is particularly important to solve the problem of increasing farmers’ income. Based on the panel data of 28 provinces (cities, autonomous regions) in China from 1997 to 2021, this study constructs a spatial panel model to empirically analyze the spatial impact of the three major factor market distortions on Farmers’ income growth. The results show that Chinese farmers’ income has a strong spatial dependence, and there is a significant spatial correlation effect in different regions. There are serious market distortions, which have significantly hindered the growth of farmers’ income. The distortion of China’s factor market not only inhibits the growth of farmers’ income in this region, but also has a significant negative spatial spillover effect. The distortion of factor market restricts the improvement of farmers’ income in adjacent areas. In the future, we need to further straighten out the influencing factors and give full play to the income increasing efficiency of various factors.

Suggested Citation

  • Guosong Wu, 2024. "Research on Farmers’ Income Increase Under the Distortion of China’s Factor Market," SAGE Open, , vol. 14(2), pages 21582440241, May.
    • Handle: RePEc:sae:sagope:v:14:y:2024:i:2:p:21582440241252504
    DOI: 10.1177/21582440241252504
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    1. Md.Salamun Rashidin & Sara Javed & Bin Liu & Wang Jian, 2020. "Ramifications of Households’ Nonfarm Income on Agricultural Productivity: Evidence From a Rural Area of Pakistan," SAGE Open, , vol. 10(1), pages 21582440209, January.
    2. Holden, Stein & Shiferaw, Bekele & Pender, John, 2004. "Non-farm income, household welfare, and sustainable land management in a less-favoured area in the Ethiopian highlands," Food Policy, Elsevier, vol. 29(4), pages 369-392, August.
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