How Rural Industry Revitalization Affects Farmers’ Incomes in China

Low income is a common problem faced by farmers around the world. In order to promote agricultural development and increase farmers’ incomes, China has implemented rural industrial revitalization (RIR). However, the following question remains unanswered: how does the RIR affect farmers’ incomes? In this study, based on the theories of rural and development economics and panel data from 30 provinces in China between 2011 and 2020, an evaluation system consisting of four primary indicators and 10 secondary indicators was constructed. A dual fixed-effects model was used to measure the promoting effect of RIR on farmers’ incomes. The results are as follows: The overall RIR level in China is rising; it significantly increases farmers’ incomes and plays a more significant role in increasing income for low-income groups. RIR promotes agricultural scientific and technological progress, which further enhances the impact of RIR on farmers’ incomes. Compared with the Midwest, the income-increasing effect is greater in the eastern region. The results of this study have important policy implications for implementing the RIR strategy and increasing farmers’ income, and they provide a useful reference for similar countries or regions and global sustainable development. The innovations of this study include (1) exploring the mechanism of the impact of RIR on farmers’ incomes by constructing a provincial-level RIR evaluation index system and (2) exploring the mechanism and policy implications of promoting the growth of farmers’ incomes through industrial development, providing effective suggestions for solving farmers’ incomes problems in countries or regions around the world.