An Empirical Analysis on the Relationship Among Urbanization, Farmers’ Income and Rural Fixed Asset Investment in the Western Regions of China

Zhizhang WANG, Yangwu LIN


The relationship among the growth of farmers’ income, urbanization and rural fixed asset investment in the western region are empirically analyzed using the panel data of 11 provinces from 2000 to 2011.Results shows that the urbanization and rural fixed-asset investment in the western region can stimulate the growth of farmers’ income on the whole and have a long-term stable relationship with it. Meanwhile, these results also suggest that there exist some discrepancies in the ability of promoting farmers’ income between the urbanization and rural fixed-asset investment in western region from different provinces. In addition, the sown area of the crops has little effect on the farmers’ income in the west of China. Under this basis, this paper also gives some relevant policy suggestions to promote the farmers’ income by urbanization.


Western China; Urbanization; fixed-assets investment in rural; Farmers’ income

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