Abstract:
Effects of agricultural product processing industry on farmer’s income were empirically analyzed by stationary test, cointegration test, error correction model, and Granger causality test based on the data of Fujian Province from 1999 to 2015. The results showed that there was significant cointegration between agricultural product processing industry and farmer’s income in the long run. When the output value of agricultural product processing industry increased by 1%, the farmer’s income would be correspondingly increased by 0.47%. The agricultural product processing industry had an obvious effect on farmer’s income, but not the other way round. Finally, some proposals beneficial for the development and competition of agricultural product processing industry were put forward in order to further enhance the income of farmers.