The impact of agricultural industrial agglomeration on farmers’ income: An influence mechanism test based on a spatial panel model

Abstract

Recently, China has exerted great efforts to develop agro-industrial agglomerations and optimize the agricultural industry’s regional distribution to increase farmers’ income. This study posits that agro-industrial agglomeration should be “dual body,” provides a theoretical framework for agro-industrial agglomeration’s effects on farmer income, and uses a spatial panel model to prove its influence on farmers’ income and the spatial spillover effect. The results show that agro-industrial agglomeration in a specific region significantly impacts farmers’ income and also has a spillover effect on income in adjacent regions. Further research shows that, contrary to traditional agglomeration theory, agricultural industry agglomeration has little impact on farmers’ agricultural production but primarily promotes the establishment and development of agricultural organizations, thus improving farmers’ income. Finally, the paper discusses the positive and negative effects of agro-industrial agglomeration on the Global Sustainable Development Goals(SDGs), and proposes some useful suggestions.