Abstract:

In order to understand the relationship between development of urbanization, agriculture modernization and income growth of peasants in Fujian Province, with the economic data ranging from 1978 to 2009, based on the foundation of vector auto-regression model, applying the Granger causality test, impulse response function and variance decomposition, the relationship between development of urbanization, agriculture modernization and income growth of peasants in Fujian Province was studied on empirically. The results showed that: the urbanization development was the Granger cause of agricultural modernization, and had positive effect on agricultural modernization in short-term, and greater effect in the long-term. Agricultural modernization was the Granger cause of income growth of peasants, not the Granger cause of the urbanization development, while agricultural modernization had an increasing effect on urbanization. Income growth of peasants was neither the Granger cause of urbanization nor the agricultural modernization, income growth of peasants had little effect relatively, with its effect increasing every period. The effect of income growth of peasants on urbanization also increased every period.