Study on the Impact of Business Environment on Farmer's Income and Its Mechanism
Identifying the impact and mechanism of the business environment on the income of rural residents is of great significance for improving their income and achieving the goal of common prosperity.This paper uses inter provincial panel data from 31 provinces,municipalities,and autonomous regions in China(excluding Hong Kong,Macao,and Taiwan)from 2017 to 2021,and uses econometric models to empirically test the effect of the business environment on farmer's income,and explores the transmission path of the impact of the business environment on farmer's income.The results showed that:The business environment has a significant positive impact on the farmer's income,and this conclusion has strong robustness.Regional heterogeneity analysis shows that the business environment has a significant promoting effect on the farmer's income in the eastern,central,and western regions,but the promoting effect is most evident in the eastern region.The analysis of the impact on the details of farmer's income shows that the business environment can significantly increase their wage income,operating income,property income,and transfer income,but the impact on wage income is the greatest.The impact analysis of the sub indicators of business environment shows that the market environment,government environment,and legal policy environment have a significant positive impact on the farmer's income,while the impact of the humanistic environment is not yet significant.The lag analysis shows that there is a certain lag effect of the business environment on the farmer's income,but as time goes on,the impact effect becomes smaller and smaller.The business environment can promote the farmer's income through two paths:improving the level of rural innovation and entrepreneurship,and attracting investors to start businesses.Based on the research findings,relevant suggestions are proposed to assist in the construction of a business environment,in order to open up new avenues for improving the farmer's income.
business environmentfarmer's incomeimpact effectmechanism research