Does farmer economic organization and agricultural specialization improve rural income? Evidence from China

This paper builds simultaneous equations model based on survey data of 2445 Chinese villages to do empirical analysis of the relationship among farmer economic organization, agricultural specialization and rural income. It finds that raising the level of agricultural specialization can improve rural income significantly, and the development of farmer economic organization is an effective way to raise the level of agricultural specialization; The factors, which affect whether farmers participating in farmer economic organization, are characteristics of farmers, situation of farmer economic organization and relevant policies promoting the development of farmer economic organization. Therefore, it has great significance to agricultural specialization and rural income growth for government to take measures to promote development of farmer economic organization.