Dynamic quantitative analysis of correlation between the development of infrastructure construction in Chinese rural areas and peasants' income growth

Based on vector auto-regression model, by applying impulse response function and prediction variance decomposition, this paper describes the dynamic correlation between the development of infrastructure construction in Chinese rural areas and the growth of peasants' income. The research shows that there is long-term forward correlation between development infrastructure construction in Chinese rural areas and the growth of peasants' income, however, the influence tends to be weak. Therefore, currently, we should increase investment in infrastructure construction in rural areas and regard the development of infrastructure construction in rural areas as the important basis for the sustainable growth of peasants' income, but not the main ways of enhancing peasants' income. Thus, government should adopt long-term investment policy to develop rural infrastructure construction so as to provide conditions for the sustainable growth of peasants' income.