Research On Rural Financial Supply To Improve Farmers’ Income

The strategy of rural revitalization was first proposed in the report of the 19 th National Congress of the Communist Party of China,and its fundamental starting point and destination is to realize the prosperity of all farmers,and the key is to promote the sustainable growth of farmers’ income.In fact,farmers’ income has always been the focus of attention of the ‘three rural’ issues,and how to build a long-term mechanism for farmers’ sustainable income is a long-term economic problem in China.The main reason why it is difficult to solve the problem of farmers’ income increase for a long time is the imbalance in the allocation of factor resources,especially financial resources.In essence,rural finance belongs to the category of factor resource allocation,which is important because the allocation and flow of financial resources incline to the "three rural" field.The Chinese government attaches great importance to the development of rural finance and regards it as a major force and an important policy tool to increase farmers’ income.In order to promote sustainable income growth among farmers,the government has repeatedly promoted the reform and adjustment of the rural financial system,and successively introduced a series of policy initiatives to support the development of rural finance,with a view to realizing the benign interaction between rural financial development and farmers’ income growth.In view of this,in-depth research on the impact of rural finance on farmers’ income and its mechanism can not only expand and enrich the existing analytical framework of rural finance and farmers’ income research,but also provide theoretical basis and decision-making reference for government departments to further deepen rural financial reform to more effectively promote the sustainable increase of farmers’ income.Based on an in-depth analysis of theories related to rural finance and farmers’ income,this paper proposes a new concept of rural industrial development pole,and constructs a theoretical framework for the impact of rural finance on farmers’ income based on rural industrial development pole.Combining the analysis of the spatiotemporal and structural characteristics of Chinese farmers’ income changes,coefficient of variation method,ultra-efficient DEA model,coupling coordination degree model,fixed effect model,threshold regression model,mediating effect model,quantile regression and other methods are used to empirically test the impact and mechanism of rural finance on farmers’ income from different rural financial supply categories,including rural financial factors,rural financial scale and rural financial structure,and put forward policy recommendations to improve China’s rural financial supply.The specific research contents and findings of this paper are summarized as follows:First,the applicability of development pole theory in rural economic development is demonstrated,and a new concept of rural industrial development pole is proposed.The connotation of rural industrial development pole is to select agricultural product and its industrial chain with comparative advantage as the leading industry and development pole,to gather resources for key development,to drive the development of other local industries through the key development of the leading industry,to improve the efficiency of agricultural production through industrial development,and finally to realize the general affluence of rural areas.The upgrading of agricultural industrial structure,agricultural industrialization operation and agricultural total factor productivity improvement are the basic paths to realize rural industrial development pole.Rural finance can not only directly influence farmers’ income,but also indirectly influence farmers’ income through mechanisms such as upgrading of agricultural industrial structure,agricultural industrialization operation and agricultural total factor productivity improvement,which can help realize rural industrial development pole.Second,this paper studies the spatiotemporal and structural characteristics of Chinese farmers’ income changes.The results show that:China’s farmers’ income has been continuously improved,but the growth rate of farmers’ income has shown obvious fluctuation;compared with the growth rate of urban residents’ income and GDP in the same period,the growth rate of farmers’ income is relatively low;the regional disparity of farmers’ income has been reduced,but it is still at a high level and tends to be enlarged in recent years,and the contribution rate of intra-regional differences and hyper-variance density is much smaller than that of inter-regional differences;the internal disparity of farmers’ income shows a rising trend,and there are obvious differences in the internal disparity of farmers’ income among different provinces;the channels of farmers’ income sources are more diversified,and wage income has replaced business income as the main source of farmers’ income,and transfer income has become the highlight of farmers’ income growth in recent years;the analysis of the structural characteristics of farmers’ income using shift-share analysis reveals that the structural advantages of farmers’ income in eastern provinces are more obvious,while the competitive advantages of farmers’ income in central and western provinces are more obvious.Third,this paper investigates the influence of different rural financial factors on farmers’ income and makes a comparative analysis.The empirical results show that factors such as rural financial network density,rural financial employee density,rural financial interrelations ratio,agricultural insurance density,agricultural insurance payout rate,and rural financial agglomeration can significantly increase farmers’ income,while factors reflecting rural financial efficiency such as farmers’ loan-to-deposit ratio and non-performing loan rate of rural financial institutions do not have significant effects on farmers’ income improvement.Further research reveals that factors such as rural financial network density,rural financial interrelations ratio,agricultural insurance density,and rural financial agglomeration have more significant effects on promoting farmers’ income in eastern regions;while factors such as rural financial employee density and agricultural insurance payout rate have more significant effects on promoting farmers’ income in central and western regions.Fourth,this paper applies the supply-demand theory to theoretically analyze the nonlinear relationship between rural financial scale and farmers’ income,and thoroughly explores the intrinsic mechanism of rural financial scale development affecting farmers’ income through agricultural industrialization operation.The empirical results show that with the increasing scale of rural finance,the promotion effect of rural financial scale development on farmers’ income shows a trend of rising and then falling,and this relationship mainly exists in the central and western regions.Further research reveals that agricultural industrialization operation plays a mediating role in the process of rural financial scale development influencing the increase of farmers’ income,and this mediating role is more obvious for farmers of low-income class and business income,and with the increasing scale of rural finance,the promotion effect of agricultural industrialization operation on farmers’ income gradually increases.Fifth,this paper applies incentive compatibility theory and systemic isomorphism theory to theoretically analyze the coordination of rural financial structure and agricultural industrial structure,and analyzes the mechanism of the role of the coordination between rural financial structure and agricultural industrial structure in influencing farmers’ income based on the perspective of agricultural technology progress.The empirical results show that the coordinated development between rural financial structure and agricultural industry structure can significantly promote farmers’ income growth,and this effect is more obvious in the central and western regions.Further research reveals that agricultural total factor productivity plays a mediating role in the process of coordinated development of rural financial structure and agricultural industrial structure influencing the increase of farmers’ income,and mainly through the role of agricultural technology progress to promote agricultural total factor productivity,further affecting farmers’ income.In response to the above findings,this paper proposes policy recommendations to improve the supply of rural finance in China from the perspective of building rural industrial development pole,which are explained at the macro and micro levels respectively.At the macro level,two aspects are discussed,such as making rural industrial development pole a strategic priority and furthering the reform of the rural financial system;while at the micro level,five aspects are discussed,such as supporting the cultivation and growth of leading industries in rural areas,supporting the large-scale operation of agricultural production entities,supporting the extension of agricultural industrial chains around leading industries,supporting the linked development of leading industries and related industries,and supporting the construction of infrastructure in rural areas,so as to further drive farmers’ income growth through rural industrial development pole.