Research On The Relationship Between Rural Informal Financial Development And Farmer's Income Growth In Our Country

With deepening of the market economy system reform,rural informal finance has developed rapidly in our countries. The "dualistic" economy system has become a market-oriented reform in the economy,which cannot avoid. It meet the requirements of market development,greatly easy the issues of agriculture famer and rural area,promote the urbanization process and a diverse rural financial market competition. The formation,in order to achieve economical and social prosperity and stability , plays an indelible contribution.Informal Finance in Chinese countries at this stage is huge. Even in parts of some place,the informal finance has replaced the formal finance. Its flexible and convenient loan features have also been accepted by most small and medium enterprises and individuals. In the process of informal financial development, there are several problems like high interest rates caused by financial market order disorder. Because of information asymmetry making the financial signal distortion and lacking of legal protection increasing social unrest,which will affect the financial development of rural informal validity and sustainability. It is very important to get further understanding of informal finance in rural areas from farmer's perspective, dealing with the relationship between formal finance and informal finance to develop the financial markets in a more ordered way.We previous to use the broadly measure of dynamic econometric model to measure the relationship between formal rural finance and informal finance and the change of farmer's income. According to the research, informal finance in rural areas cannot be ignored and is of great efficiency in the financing arrangements. Its growth can promote the improvement of farmers'income. Therefore, to achieve the reasonable and ordered development of rural informal finance, we must build up an integrated rural informal financial system,and actively organize various forms of civil service,optimize and integrate of private resources,improve the rural informal financial operating ecology, further promote the co-operation between formal finance and non-formal finance. These are effective way to promote the development of non-formal finance and increase farmer's income.