On The Role Of Rural Finance In The Farmers' Income Growth

In this thesis, I use the method of OLS to make the influential factors to the farmer's income out , credit funds. At last, I come to a conclusion. From 1980 to 1991, the decisive factor is the price of grain. The credit funds also have a dramatic effect on the farmer's income during this period. From the analysis I find out that there exists correlation between the credit funds and the structure of work, that is to say, the credit funds enhance the progress of the farmer's work change in this time. From 1992 to 2002, the decisive factor of the farmer's income have changed into the structure of work. But ,the price of grain is still an important influential factor. In the same time, the analysis also show us that there is correlation between the educated years and the structure of work, i.e, when the farmers receive a better education ,the capabilities of changing their jobs will be stronger. From the final outcome, we also find that the use of the credit funds isn't efficient in the rural area, whose effect isn't evident on increasing the farmer's income.I give several pieces of advice on the basis of the analysis of the reason why the credit funds is ineffective and the reference of the former successful experiences. On the rural financial institution, I suggest that we should go on reforming the owner-right system, improving the outer environment and so on.