Asian Agricultural Research/ZiM#eWIF 5 2009, 1 (6) :1 -3,9 Responsible editor.Jinyan Responsible translator. Chengna, Cluster Analysis on Per Capita Net Income of Rural Households in China GUAN Lin-lin’ , MEN Ke-pei College of Mathematics and Physics, Nanjing Universty of Information and Technology, Nanjing 210044, China ‘Abstract This paper summarizes the status of rural areas in China, and introduces the principle of Cluster Analysis. According to related statistical data, per capita net income of rural households in various regions of China is analyzed by adopting the method of Cluster Analysis. The results ‘show that a total of 31 ces, autonomous regions and provinces in China can be sivded into 4 types, The fst type includes Beijing and Shanghai Comprehensive economic strengths of these regions, as well as per capta net income of rural households, are inthe foretront. The second type in- cludes Tianin, Jiangsu and Zhejiang Provinces of China, which have superior conditions of agricultural production with excellent foundation of agr- Culture and stable income sources. The third type includes Liaoning, Shandong, Fujian and Guangdong. The 4 provinces are located in eastern coastal area which have abundant marine resources and relatively higher living level ot rural residents, and are suitable for the growth of crops. The rest regions can be classified into the fourth type, which have lower agricultural oulput and per capita nel income of rural households due tothe im pacts of locaton and climate condkton. Key words Rural household; Per capta net income; Cluster analysis; China ‘China has 900 milion farmers, accounting for 70 percent of China's total population. Therefore, development of rural econ- ‘omy and the living standard of farmers are important for the ‘economic development of China. However, the status is worri- ‘some in rural areas at prosent. Most of the rural areas still ‘adopt the tracitional tilage method. Cultivation area for each farmer is relatively small, which has dampened the farmers’ en= thusiasm to a certain extent, and reduced the usage rate of mechanization and the labor productivity. There is also great in- novation on crop varieties. But the seeking for production dur- ing cutivation by spreading a large number of pesticides and fertilizers has led to the quality reduction of crops, the restric» tion of export, the decrease of market share and the low in come of farmers. At present, affected by the global financial crisis, rural economy is at a crtical period, and economy of va- rious industries in China suffers from different degrees of dam- ‘age. Thus, employment of migrant workers is greatly affected. ‘And the decrease of farmers’ income affects the agricultural production and their daily fe. For instance, insufficient income leads to the insufficient funds of production inputs, and affects, the stability and development of rural economy, Net income of rural households refers to the part of income can be used directly in production, consumption, savings, and non-productive construction investment in the total household income of rural residents, after discounting the productive and non-productive management costs, payment of tax, and collec- tive contract task amount. Net income of rural households in- cludes the productive and non-productive management income Received: June 6, 2009 Accepted: June 26, 2008 ‘Supported by the National Key Statistical Scientfic Research Project ‘of the National Bureau of Statistic. + Corresponding author. E-mail, Iguan77 @sina. com from the non-operating income subsidies, state financial relief, ‘and money sent by migrant workers. It includes both monetary income and self-made and selt-provided income from material object, but not includes the lending revenue from bank, credit cooperatives, relatives and friends"!, Due to the affects of ge- ‘graphical location, climatic conditions and other factors, there are differences among the economic development, the house hold income of rural residents and the per capita net income of rural residents in different regions. Cluster Analysis method is ‘adopted according to the situation of each region in order to ob- jectvely analyze the net income of rural households in each cat- fegory, and to provide a reliable basis for socio-economic sus- tainable development of China. 1 The principle of Cluster Analysis Based on the principle of * things of a kind come togeth- ft" , Cluster Analysis classy the samples or indicators by a multivariate statistical analysis method *~? . Individual or object is classifed so that the sinilarty betwoen objects within the same category is stronger than those within diferent catego- ties. There are diferent levels of simiarty (relaionship-meas- uted by the astance between samples) between the samplos (dots) or indices (variables). Thus, according to the observa- tion indices of a batch of samples, statistics which can measure the similarity degree of samples or indices are found out, and the statsties are the basis fo the division of category, Samples (indices) with greater similarity are gathered as one category. and tho rest with greater simiarty are clustered as another cat- fegory unt all the samples (indies) are aggregated, wich is the basic idea of classilcation. And duting this process, cate- gory refers to a collection of similar elements, By adopting a certain clustering method, all the samples or variables are clas- sified into various categories, so that the same type of individu2 Asian Agricultural Research 2008 al has a greater similarity, and individual differences in different categories are larger. 2. Cluster Analysis on per capita net income of rural households in different regions Per capita net income of rural household in 31 dliferent regions of China inthe year 2007 is taken as research samples to conduct cluster, the data of which are from the China Stats- tical Yearboo-2008'*'( Table 1). Cluster Analysis on the data of 31 regions is conducted, ‘and clustering process is shown in Table 2. According to the 4 indices (SPRSQ, RSQ, PSF and PST2) in Table 2, we can determine that clustering results divided into 4 types are the most appropriate, Fig. 1 ilustrates the tree diagram of Cluster ‘Analysis, indicating that the 31 provinces (cities, autonomous rogions) can be divided into the following 4 types. 20 quence hhouseholis ||1¥°"°* households 1 Beijing 9439.63 [17 Hubei 3997.48, us — 6 Liaoning 4773.43 [22 Chongqing 3 508.29 The first type is Being and Shanghai; the second type is, 7 Slim 4191.34 1128 Sichuan 3 546,69 Tianjin, Jiangsu and Zhejiang; the third type is Liaoning, Shan- 8 Helongiang 4192.28 |}24 Guizhou 2973.99 dong, Fujian and Guangdong; the fourth type is Hebei, Jilin, 9 Shanghai 10.144.€2 [25 Yunnan 2en.oe Heilongjiang, Inner Mongolia, Hubei, Jiangxi, Henan, Hunan 10 Jiangsu 6561.01 |[26 Tibet 2788.20 Hainan, Shanxi, Anhui, Sichuan, Chongging, Guangxi, Ningx- 11 Zhejiang 8265.15 1/27 Shaanxi 2 644.69 ja, Xinjiang, Guizhou, Gansu, Yunnan, Shaanxi, Qinghai and tame” Sasear fan cme Same 1 done an so Nene 318.88 pana Inthe thant compere scones 15 Shandong 4985.34 1/31 Xinjiang 3182.97 ‘strength. And Shanghai is one of the developed cities in main- ‘even aaste fand China ‘The two ies have the aatentages of feverae Neos pone tg ae Se = one comet ree oon a SG Some to aes coon 2 Soe comet es m= bmes 2 ca teneg 8 come tm ear red a Sian Sao 3 Some mo Sau ma bes a ameem, a oes 2 meee Someta ootes a setae, Some tm eae oon a Cee ; Someta Sean aa ans * Sahara 3 Some toa Blea " Seo ace : Sous ha See ee bone " on cut 3 Soot to Sage ees x ee : Soot taba ae Gees puma Scoot dame Sane es t ee : Sons Samet wr Gee f Staats : Sere Se oe uo le ‘ cies ; Soe Ss a a esGUAN Linsin ot al. Cluster Analysis on Per Capita Net Income of Rural Households in China 3 Table 2( continued) NOL (Clusters joint FREQ’ SPRSQ RSQ PSF PST2 Cluster distance & Bejing Shanghal z 0.0027 os 1% O.22e 5 ous cuit 2 0.0517 0.923 73.2 57.6 0.443 7 4 CL Zhojang 3 0.0125 ost ore 14.5 0.536 6 3 cis cl7 28 0.092 1 0.819 3.2 30.0 0.886 3 2 cls cla 5 0.065 0 0.784 38.7 12.6 0.946 0 1 eras 31 0.7537 0.000 38.7 17H 5 geography and people's support. Therefore, their economic strength, per capita income and per capita net income of rural households are the forefront in China, In the second type, Tianjin, the gateway to the capital city Cf Beijing, is one of the four municipalities directly under Cen- tral Government, In recent years, Tianjin City adheres to the development trend of market-oriented agricultural and costal city, gives full play to the advantages of position based on agri- cultural efficiency and farmers’ income, and actively promotes the strategic adjustment of agricultural structure. At the same time, Tianjin City vigorously develops the aquaculture industry, pays close attention to agricultural facilties, agricultural parks, standardization and industrialization®’, and greatly increases the income of farmers. Jiangsu, a well-known economic big province, is famous for its fishery resources and silk, having Unique conditions for agricultural production, Thus, rural resi- dents have a very good soutce of income, and the per capita net income of rural households is relatively high. Zhejiang is a developed coastal province opening to the outside world, which is also a land flowing with milk and honey. It is a comprehen- sive high-yield agricultural region noted for diversified economy and intensive farming, Therefore, the per capita net income of rural households ranks the top. Liaoning, Shandong, Fujian and Guangdong in the third type are located in the eastern coastal region of China, having rich marine resources. Among them, Liaoning is at the south- ‘em area of northeastern China, an important junction of China's northeast economic zone and the Bohai Economic Zone with ax bundant water resources, high agricultural output, higher in- come of peasants, and relatively high per capita net income of rural households. Shandong is a major agricultural province in ‘eastern China with a long coastline. Developed transport in ‘Shandong Province has caused rapid economic development, land further improvement of the living standards of rural resi- dents. Fujian Province is a region with most abundant rainfall ‘and mild climate which is suitable for the growth of crops. Agr cultural development is relatively fast, and the per capita net in- come of rural residents is relatively high in Fujian, Guangdong is one of the most developed provinces in China with abundant water resources, favorable conditions for agricultural cultivation ‘and relatively high per capita net income of rural residents. Per capita net income of rural residents in 22 areas of the fourth type is below 4 500 yuan, Due to the geographical and climate conditions, agricultural output is relatively low in west ‘em regions of Guizhou, Gansu, Yunnan, Shaanxi, Qinghai and Tibet. Thus, per capita net income of rural residents is be- tween 2 000 and 3 000 yuan in these provinces, which is rela- tively low. 3 Conclusion ‘As it was mentioned above, economic development of each region is different due to different geographical and cli= mate conditions, which leads to the differences of per capita not income of rural residents. Cluster Analysis method can re veal the economic development of each region, as well as the por capita net income of rural households. Thus, Cluster Anal= ysis is a reasonable, simple and fast analytical method China is a developing country. To promote China's eco nomic development, economic problems in rural areas should be solved first of all, and the per capita income of residents should also be increased, Therefore, a series of matching measures should be adopted, such as the reform of rural taxes and fees, Research result of this paper has certain practical significance, but there are stil many issues left to be further studied, References [1] BIOBILL, Net income of rural househokis| EB/OL]. (2007-10-12) [2008-06-21 . tp://bake. baidu. conv view/1187155. him. (in Chinese) 2] WA CO, QIN WL. Appliod multivariate statistical analysis[ M]. Be Jing; China Meteorological Press, 2007. (in Chinese). '3] WANG XM. Agpization of multivariate analysis( M. 2" ed. Shang- hai; Shanghai Unversiy of Finance and Economics Press, 2004 (in Chinese) 4) National Bureau of Statist. China statistical yearbook 2008 Mt Beling: China Stalstcs Press, 2008, (in Chinese). [5] ADXINIUELUO YM. Tianin| EB/OL }. | 2008-06-21 |. htp://balke. baidu.comv/view/2828. him. (in Chinese). 6] DAW, XIAO H, ZHUO M. Multiple regression analysis on the nat in- come and consumption expenditure of Chinese rural households in 2007[ J]. Journal of Anhui Agricultural Sciences, 2008, 37(4):13 — 15. (in Chinese) [7] JING BJ, SHI ZHEN H, HE ZB, et al Shanxi Quanttatve Analysis ofthe Income Gap between Urban & Rural Residents[ J). Journal of ‘Shami Economic Management Institute, 2007, 15(3) 81 ~95. (in Chinese) '8] REN LL, Demonstration study on the relationship between income and coneumption expenditure of Chinese rural household in diferent yyoars| J). Joumal of Anhui Agricultural Sciences, 2007, 35(21) 318 221. (in Crinese). 9] MA Z. The quanttative and qualtative analysis of fulling a com- fortaby-off community in Heran| J). Joumal of Zhengzhou Instute of Aeronautical Industy Management, 2003, 211); 81 —83. (in Chinese) (To page 9)WANG Dong:ping of al, Employment and Transfer Status of Female Labor Force in Rural China 9 this situation, according to the characteristics of abundant sur- plus labor force and low quality and low labor costs of rural women, we should make full use of rural resources, focus on food processing industry, feed processing industry, means of production, energy industry and tracitional handicraft produc- tion, promote the degree of association between rural industry ‘and agriculture, and provide more opportunities for in situ transter of rural female. In addition, after implementing agr- cultural industrialization, integration of agricultural production, processing and marketing can be realized; a large number of population under disguised unemployment in rural areas can be absorbed by the new job vacancies. Meanwhile, agricultur- al industrialzation stimulates the development of social service of agriculture, which is an important form suitable for the ‘women in rural areas. Therefore, we should rational distribute the rural labor force, gradually guide the female labor force en- ‘gaged in industries suited to their qualities and skills, fully mo- bilize the enthusiasm of labor force, and separate them from single farming, which not only promote the in situ transfer of rural female labor force, but also accelerate the pace of agri- ccutural modernization References [1] TANG P. The current situation, employment structure and issues of farm labor(R]//A research report of Chinas farm labor in 2005. Beling: China Statstes Press, 2005; 88. (in Chinese). [2] Department of Industry Paicy and Law, the Ministry of Agriculture Suation, problems, and strategy on transformation and employ- ment of rural labors( J”. Issues in Agricultural Economy, 2005(8) 28-24. (in Chinese). 2] ZHANG Z. A statistical analysis on the supply of rural migrant labour forces—concurrenty on the shortage of rural rigrant labour forces [J]. Chinese Rural Economy, 2005(1); 17-25. (in Chinese) 4) SHENG LY, PENG LQ. Scale, structure and special characteristics ‘ofthe rural rigrant labor force[ R]//A research report of Chinas farm labor in 2008. Beling: China Statistics Press, 2008. 75 - 81 {in Chinese) '5] SHENG LY. Labor flow or migration. an economic analysis of rural Inbor flow process[ M]. Shanghai; Shanghai Far East Press, 2008; 13-14 (in Chinase). 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