The Chinese No. 1 document of the Central Government in 2024 emphasized that promoting the integration of rural industries has significant strategic importance for building a modern agricultural power, improving farmers' income, and achieving common prosperity. Based on the panel data of the third phase of the China Household Tracking Survey (CFPS) from 2014 to 2018, this study constructs an evaluation index system for the integration of rural industries. It utilizes the entropy method to measure the integration index of rural industries and employs a bi-directional fixed-effect panel model to empirically analyze the impact of the level of rural industry integration on rural household income and the urban-rural income gap. It has been found that the development of rural industry integration can significantly increase farmers' income, narrow the income gap between urban and rural areas, overcome endogenous problems through a hysteresis effect, and maintain stable results. The mechanism analysis indicates that the increase in income from rural industry integration and the reduction of the urban-rural income gap can be achieved through the development of the agricultural products deep processing industry. In addition, the level of rural industry integration exhibits regional heterogeneity in its impact on the improvement of farmers' income in pilot and non-pilot areas. Therefore, this paper can provide empirical evidence to support the development and enhancement of relevant policies.

Lexuan Qi. Can Rural Industry Integration Improve Rural Household Income? Empirical Analysis Based on CFPS Data. Academic Journal of Business & Management (2024) Vol. 6, Issue 3: 1-10. https://doi.org/10.25236/AJBM.2024.060301.

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