An Empirical Analysis of The Effects of Technology, Finance, Education and Labor on Rural Economic Development

Abstract

The rural revitalization strategy has always been China's fundamental national policy, and the development of the agricultural economy has always attracted much attention. At present, the industrialization and large-scale development of China's agriculture has accelerated the process of agricultural modernization. At the same time, it has also spawned diversified technical needs, financial needs, and talent needs. However, as far as the current development of China's agricultural economy is concerned, there are specific gaps in the relevant reserves of the above three. For the development of modern agriculture in China, it is necessary to reserve a force to realize a step-by-step transformation. So, at different stages of industrial development, it is essential to weigh the proportion of investment in various elements such as technology, finance, and talents to ensure that agriculture develops steadily and achieves structural transformation. This paper expounds on its impact on agricultural economic growth from the four perspectives of technology, finance, education, and labor. First, this paper expounds on the research motivation and questions, and intends to explain its impact on the agricultural economy from the four perspectives. It also cites domestic and foreign literature and analyzes relevant agriculture research by Chinese and American scholars. Moreover, based on the above analysis, select the relevant data from 1991 to 2020, and use the time series model to carry out empirical regression from the four dimensions of technology, finance, education, and labor force. Through the VEC model, impulse response, and variance decomposition to further analyze the contribution rate of agricultural economic growth and technology, finance, education, and labor to agricultural economic growth. The result show that financial support for agriculture and the growth rate of the rural labor force have a more significant role in promoting the stable growth of agriculture, and the improvement of education and technological progress also have a certain degree of positive impact on the development of the agricultural economy. Therefore, it is essential to coordinate multiple resources and jointly promote China's agricultural economy's rapid and stable development. Finally, based on the above empirical and theoretical analysis, this paper gives corresponding policy recommendations. Key words: Technology, Finance, Talent, VEC Model