Research On The Relationship Between Chinese Rural Finance And Peasant Income Increasing

New country construction is an important topic for discussion in this year's NPC (the National People's Congress) and CPPCC (Chinese People's Political Consultative Conference), develop and strengthen the rural economy, solve peasants employment, and increase peasants income are center links during constructing the socialism new country, however, rural finance problem is a key point of new country construction. It plays a supporting role for the development of rural economy and the increase of peasants'income to construct rural finance system.However, rural finance development exists serious problems. It is still difficult to provide loan to peasants and rural corporations, especially to small and medium-size enterprise in the country. Therefore, the reformation on solve the bottleneck of rural finance supply becomes imminent so as to promote the development of rural economy and break through the puzzle of"three agric"development. One of the research angles is increasing the peasants' income.This paper uses linear regression analysis method demonstrating the factors that influence the growth of peasants'income since 1983. As a result, the major factors that influence the rural per capita income have changed since 1990, The change of employment structure become the major factor that influence the growth of rural income. The price of farm produce is still the important reason that influences the rural per capita income. But credit investment takes a poor efficiency to support the increasing of rural revenues at this period.In view of diversity is remarkable in different area, this paper demonstration the relationship between the develop of area rural finance and the increase of peasants'income under the foundation of analyzing the three area rural finance develop and the growth of peasants'income that use the data from 1996 to 2005 according Panel Data Model. The analysis reveals that China's current rural financial development is inhibited. And the degree is far higher in the central and western parts than that of the eastern region. China's rural finance development has not endogenesis in the rural economy and appears "duality" feature obviously. The development is imbalance and the peasants'income gap is broadening in different regions. The rural financial system is in a state of non-equilibrium at this time.Based on the empirical results, the author think that at present, China's rural financial inhibition of the main reasons are that: the system arrangement led to inadequate supply under the government dominant, "dual structure" of Rural Finance, Rural financial system lopsided development, the interest rate can not play a normal role in the allocation of resources. To this end, this paper gives. the suggestions in the aim to improve the rural fiancérapidly, the suggestions are: the establishment of a multi-layered rural financial system, the establishment of virtuous circle mechanism of supporting rural funds, loosening the restriction on interest rates, loosening the non-formal financial control, accelerate the pace of reform on formal financial, clear the relationship between the government and the rural financial.