Empirical Analysis On The Relationship Between Hunan Rural Financial Development And Farmers' Income Growth

" Three dimensional rural issues"—the solution to this problems is to increase the income of farmers and the improvement of their living standards. With Hunan building a well-fixed society, how to increase the income of peasants is related to economic and social development of Hunan's a major task. Since reforming and opening up, Hunan's rural economic reform has achieved marked success, which include rapid increase in agricultural output, and a substantial increase in farmers'income. But we should also realize that the current rural financial inhibition phenomena in Hunan, which has weakened the whole functions of financial system, and the financial services difficult to satisfy the needs of rural economic development, thereby affecting the growth of the income of the farmers, what is an important incentive reason that the income of peasants in recent years at a level of slow growth and the income gap between urban and rural residents to expand in Hunan Province.Based on the level of Hunan rural financial development, this paper want to understand the function and role that the allocation of resources in the Hunan rural financial plays in the growth of the farmers'income. This paper uses statistical methods to analyze the impact in the per capita net income of farmers in Hunan from Hunan rural savings rate, the rural financial institutions and the level of investment in rural areas. After unit root test, cointegration test, Granger causality test, we know that there is long-term cointegration relationship between Hunan rural financial development and income growth of farmers, and the Hunan rural financial development is significant factor to promote the growth of the income of the farmers, but it was rejected that the income of the farmers growth is Granger reason of the development of the rural financial, that is to say that they do not exist two-way Granger causality, indicating that in the transfer process of the financial policies in Hunan rural areas, there are some factors hindered the revenue system to promote the financial development ;After impulse response, and variance decomposition analysis , we found that in the short term, Hunan rural financial inhibited the growth of the income of Hunan farmers on the contrary. But with the gradual deepening of the rural financial, resource allocation gradually became reasonable, in the long-term Hunan rural financial will have a significant role in promoting income growth for farmers. Thus it will provide the empirical basis to Hunan rural economic and financial development of policy options.