The relationship between rural employment rate and rural development: An analysis based on a bivariate VAR model

Rural development has been a traditional concern in China. With large rural populations, Communist Party of China focuses on solving the three agriculture-related problems. Currently, transfer population from country to city leads an obvious reduction employment primary sector. As populous country, agriculture is foundation China’s national economy. This paper investigates relationship between sector and total output value index farming, verifying effect labor factor. The econometric investigation based bivariate VAR model shows industry dynamic change characteristic agricultural production. Further, changes negative positive.