Balancing Efficiency and Equity:Development of Rural Collective Economy and Common Prosperity of Farmers and Rural Areas
Developing rural collective economy is an important force and central carrier for promoting common prosperity of farmers and rural areas.Based on the perspective of efficiency and equity,this paper constructs a theoretical analytical frame-work for the development of rural collective economy to promote common prosperity of farmers and rural areas,and empirically tests it using the 2020-2022 China Land Economy Survey(CLES)panel data.The study concludes that the development of rural collective economy can effectively promote the income increase of farm households,and a variety of tests have verified the robust-ness of the results of the study;the mechanism analysis shows that the development of rural collective economy drives the income increase of farm households through the promotion of the development of the agricultural land transfer market and the develop-ment of rural labor market,which is specifically manifested in the enhancement of the quantity and quality of agricultural land transfer and the promotion of stable employment close to the place of residence.Taking into account the heterogeneity of rural governance environment,the income increasing effect of rural collective economy development on rural households is stronger in villages that have implemented the reform of the rural collective economic share-cooperation system,where village cadres are better educated and where village committees are multi-taskers.Expanded discussions show that the development of the rural collective economy has a more pronounced effect on increasing the incomes of low-income farming households,effectively nar-rowing the income gap and ensuring efficiency while taking equity into account.Therefore,taking the development of the rural collective economy as a starting point,guiding the development of the land transfer market and the rural labour market,and col-laborating to promote the optimization of the rural governance environment will be an important channel for realizing the common prosperity of farmers and rural areas.
Rural Collective EconomyAgricultural Land Transfer MarketRural Labor MarketFarmers'IncomeCom-mon Prosperity