An Analysis of Macroeconomic Factors of Farmers Income Increasing in Hubei Province --Basing on Regression Model of the Main Elements

Using the theory of the principal component analysis model and overcoming the multiple co-linearity among the factors,this article used the yearly data from 1982 to 2005 to set up a principal component analysis model between the macro factors which affect the income of farmers and the net income of farmers in Hubei Province.Nine of the twelve factors mentioned in the article have the same influence on the net income of farmers as the basic hypothesis.This article told the different contributions of the nine variables to the net income of farmers,and also explained why the other three variables are opposite to the basic hypothesis.