Empirical analysis of regional marketization differences affecting the structure of farmers´ investment

In this paper, after the investigation of 410 farmers´ investment in Shandong province, using the method of Paneldata Model test regional marketization differences affecting the structure of farmers´ investment. The results show that agricultural machinery, TV number and proportion of non-agricultural labor has a positive effect on the farmers´ primary industry investment. Agricultural mechanical force is higher, farmers are more willing to engage in primary industry investment. This affectes its secondary industry investment. The proportion of wage in total income and cash income in net income increased don´t promote farmers to invest more on the secondary industry, and farmers are willing to invest part of cash income into the tertiary industry; TV and telephone numbers are higher, farmers getting outside information faster and more comprehensive, farmers are willing to increase their investment. In the process of industrial structure adjustment, the tertiary industry is the most favours investment for farmers. In addition to agricultural machinery, other regional market factors have contributed to increase the farmers´ investment in the tertiary industry. Barries to entry tertiary industry are low (including low capital requirements, technical requirements) and investment rate of return in the tertiary industry is higher than in primary industry, so when the farmers´ funds are sufficient, they are more willing to invest in the tertiary industry.