Empirical Study on Rural Circulation Industry Promoting Effect on Rural Economy

Abstract

Based on the data of 1991-2007, this article estimates the rural circulation industry promoting effect to rural economy by using state space model. Then, by means of quantitative analysis, this study demonstrates that there is the long-term cointegration relationship between rural circulation industry promoting effect and rural per capita net income, the level of urbanization and rural per capita consumption. It is found that rural per capita net income and the level of urbanization have a positive role in improvement of rural circulation industry promoting effect, and the later is especially important. But the influence of rural per capita consumption on rural circulation promoting effect is negative. Regarding this, the article puts forward several corresponding proposals.