Impact On Farmers' Income Of The Rural Financial Development In Guizhou

Financial development is the core of modern economy, and it has a decisive roleon modern economic development. Many scholars and government decision-makinghave researched the development of rural finance issues in-depth, and has made moreresearch results, but comparatively speaking, the study of relationship between therural financial development and farmers’ income growth is still relatively small. At thepresent, the domestic studies of the rural financial development and farmers’ incomegrowth were investigated at the national macro-level, the conclusions weremacroscopical, and less took into account the differences in the level of ruraleconomic development between various regions and the existence of the geographicalsplit situation, so to some extent, the guidance of the related research on specific areaswere weakened. So under the status, based on the regional particularities of GuizhouProvince, the study of relationship between the rural financial development andfarmers’ income growth in Guizhou Province will be more theoretical and practicalsignificance.This article combined with empirical analysis and normative analysis, and usingempirical research methods to analysis the status of the development of GuizhouProvince rural financial income of the farmers, and start from the theoretical analysisof the relationship between analyses; in empirical studies, this study used unit roottests, cointegration theory test, Granger causality analysis based on mathematicalmodel.Through empirical test and regression analysis on the development of ruralfinance in Guizhou relevant statistical indicators and annual net income of ruralresidents in Guizhou, we have gotten impaction of the Guizhou rural financialdevelopment on farmers’ income growth. Through analysis of the existing researchresults, the problems of Guizhou rural financial have been analyzed. Then learn fromthe experience of advanced countries and regions, combined with the characteristicsof China’s economy, give policy recommendations on Guizhou rural finance madefurther enhance the contribution of farmers’ income growth.According to the results of empirical studies, this study draws the followingconclusions: (1) Through the stationary test, the relationship between Guizhou Provincefarmers’ capita income and rural financial development was first-order non-stationaryprocess. Farmers’ capita income and rural financial development variables influenceeach other, mutual checks and balances.(2) Cointegration test results show that there is a positive correlation between theefficiency indicators and structural indicators of the rural financial development inGuizhou Province and rural per capita income growth, and it indicates that the contactof the rural financial development and farmers’ income growth is close in GuizhouProvince.(3) The results of Granger causality test show that the structure of rural financialdevelopment in Guizhou Province and farmers’ per capita income growth has aninteractive relationship, that is, optimizing the structure of rural financial developmentin Guizhou Province is conducive to the growth of farmers’ per capita income, whilefarmers’ income growth is also conducive to the development of rural financialstructure optimization, further the development of rural financial deposit is promoted.On the basis of empirical findings make four policy recommendations: First, wemust continue to deepen rural financial reform; Second, reshaping the rural financialmarket, and promote the scientific development of rural financial markets; urthermore,to strengthen the intensity of investment in the rural credit; Finally, the principle ofharmonious development should be fully embodied during the development of ruralfinance.