2009•The rural economyRequires access

The VAR Model Analysis of How to Increase Peasants Income in Anhui Province

MA Huai-li

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Abstract

The question of peasants’ increasing income in Anhui Province is it lower than the national average level not only in absolute level but also in the growth rate. The disparity between city and countryside, or among peripheral provinces had the tendency of expanded. The wage income accounting for the proportion increases year by year. This article used VAR model analysis to conclude: the citizens’ income is the Granger course of peasants’ income, over 50% fluctuation of peasants’ wage income receives from the fluctuation of citizens’ , the peasants’ managerial income contributes to 30% of its’ fluctuation. So we should improve the national income assignment, enhance the peasants’ productive skills, construct the new relations between city and countryside for city nurturing return to rural. Only through these ways, peasants can enhance its’ increasing income ability.

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The question of peasants’ increasing income in Anhui Province is it lower than the national average level not only in absolute level but also in the growth rate. The disparity between city and countryside, or among peripheral provinces had the tendency of expanded. The wage income accounting for the proportion increases year by year. This article used VAR model analysis to conclude: the citizens’ income is the Granger course of peasants’ income, over 50% fluctuation of peasants’ wage income receives from the fluctuation of citizens’ , the peasants’ managerial income contributes to 30% of its’ fluctuation. So we should improve the national income assignment, enhance the peasants’ productive skills, construct the new relations between city and countryside for city nurturing return to rural. Only through these ways, peasants can enhance its’ increasing income ability.

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Available abstract

The question of peasants’ increasing income in Anhui Province is it lower than the national average level not only in absolute level but also in the growth rate. The disparity between city and countryside, or among peripheral provinces had the tendency of expanded. The wage income accounting for the proportion increases year by year. This article used VAR model analysis to conclude: the citizens’ income is the Granger course of peasants’ income, over 50% fluctuation of peasants’ wage income receives from the fluctuation of citizens’ , the peasants’ managerial income contributes to 30% of its’ fluctuation. So we should improve the national income assignment, enhance the peasants’ productive skills, construct the new relations between city and countryside for city nurturing return to rural. Only through these ways, peasants can enhance its’ increasing income ability.

Key concepts: Wage, Net national income, Economics, Measures of national income and output, Rural area, Wage rate, Demographic economics, Construct (python library)

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