The Study On The Relationship Between Rural Financial Development And Peasants’ Income Growth

Since the reform and opening up,the world was amazed by the speed of chinese economic development. The expansion of financial assets and improving financial system play a very important part in chinese economic development. On the other side, the development of rural finance is not so smooth.The three-times rural financial reform aim to better serve the "Three Rural Issues"is unsatisfied. The difficult in financing for the peasant is still obvious.And the rural financial system supporting for "three rural"is still weak.The peasant who live in jiangxi and zhejiang face the same weak rural finance environment but their income have enormous differences.This paper is focus on discussing the relationship between rural finance and peasants’income of the two provinces,as well as its different modes of action in promoting the growth of peasants’ income.By the comparative analysis, i hope to find out the countermeasures of the rural financial industry on supporting to increase peasants’ income in Jiangxi,and then increase the jiangxi peasants’income.The writing point for the first chapter is that Zhejiang peasants’income is much more higher than that of Jiangxi.This chapter wants to analyze the cause, particularly in the rural financial aspect.At the same time,this chapter also elaborates the meaning of this thesis,the academic meaning of this thesis is that extending the research field of rural financial development and peasants’income growth to the provincial rural.The practical meaning is to further analyze the reason of the peasants’ income gap of the two provinces,so as to provide reference for increasing peasants’income in jiangxi province.This chapter also summarizes the reasearch status at home and abroad,the methods and research ideas also be introduced in this chapter.The second chapter mainly introduce the financial development theory,the rural financial development theory.At the same time,it also analyzes the relationship between chinese rural finance and peasants’ income from different viewpoints.Goldsmith’s financial related ratios theory and Gurly and Shaw’s theory of financial deepening effects profoundly in the financial development theory.The core of the rural financial development theory include agricultural credit subsidies theory,the rural financial market theory and the imperfect competition theory.All of them make profound influence in developing countries.Either from the system aspect or rural financial institution arrangement, China’s rural financial for the peasants is still lack of power. The third chapter comparatively analyzes the current situation of peasants’income and the development of rural finance of jiangxi and zhejiang.The peasants’income of Jiangxi and zhejiang are growing,but the main force of growing is different.The main force of growing is family income in jiangxi, while it is wage and other incomes in Zhejiang.As for the financial development, the scale in Zhejiang is larger than that in Jiangxi,and the folk finance is also relatively more developed in Zhejiang.In the fourth chapter,the financial development is measured by financial development level,the financial structure function, financial development efficiency. According to the peasants’ income source,this article devides peasants’ income into salary、family and other incomes. Here we use the canonical correlation to analyze the relationship between the rural financial development and peasants’ income. Then we realize that the rural finance and the peasants’ income growth in Zhejiang has established the mutual interaction mechanism.However, the rural finance just promotes family income growth. The peasants’ income growth won’t make big effects in rural financial development.The fifth chapter draws some policy recommendations about Jiangxi rural finance to promote peasants’ income growth.Firstly, we need energetically develop township enterprises to make the peasants in Jiangxi work nearby or in their province. Secondly, it’s important to accelert the transfer of rural surplus labor.Thirdly, to increase the supply of rural capital and meet the demand of rural economial development is also a requisite. Finally, the financial institutions should innovate work mode to truly meet the peasants’ financial needs.