Abstract

This paper reveals that agricultural growth trend in China is strongly correlated with the growth of off-farm industries—the curve of net income from off-farm industries reflects the general characteristics of net income of households. That means the increase of net income of farm households is chiefly from off-farm industries, more than from agriculture. The authors therefore conclude that the “poverty” in mountain areas or the gap between mountain areas and plain areas lies in the underdevelopment of off-farm industries in mountain areas. Finally, the authors make suggestions of strategic adjustment of economic structure: 1) present situation of mountain areas in China should be fully considered; 2) a full industrial system is not our desire; 3) advantageous industries should be promoted to create famous products; 4) industrialization and urbanization in mountain areas should be promoted and so on.

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