The Rural Financial Support System Research Of Guangxi Farmers’ Income Growth

For a long time, the income of the farmers in Guangxi Province has been increasing slowly, rural consumption level is low and there are still some farmers wandering around the poverty line in the province, which has broad overreaching effects on the politics, economy and society of Guangxi Province. Through the researches on many countries and regions, it indicates that one country’s economic development level is inseparable from its financial market development level. Thus, it is essential to have a study of the relationship between the agrarian finance and farmers’income in Guangxi.First, the thesis applies the theories related to finance, emphasizing the significance of finance on economic development. Meanwhile, it employs the financial deepening theory and financial inhibition theory to remedy the defects of the traditional economic development theories which have an emphasis on impacts of capital, labor, real estate, technology, resources and so on and ignore the impacts of the current financial markets on the economic growth.Secondly, the thesis has an analysis of the current situation of the rural residents’income in Guangxi. And from the statistic data of1980-2010, it shows that the income of urban and rural residents has generally gone up, the increment speed of per capita disposable income of urban residents is rising much faster than that of the per capita net income of rural residents and the income gap between urban and rural areas is widening. At the same time, the thesis has an analysis of the financial supply conditions in Guangxi financial markets and introduces the advantages and disadvantages and the existing problems from both formal finance and informal finance.Thirdly, empirical research was conducted on the relationship between the financial development of Guangxi countries and the revenue growth of Guangxi peasants. Financial development level is measured by financial developing efficiency index and financial developing scale index. Through the collection and summary of the data, regression analysis by metering software, unit root test, cointegration test and Granger test, the result shows the obvious relevance between the financial development of Guangxi countries and the revenue growth of Guangxi peasants.Lastly, empirical study proved that the Guangxi agrarian finance is restricted during the developing process. The organizing system of agrarian finance and financial service still need to be improved. The operation scale of the new agrarian financial unit is small and the anti-risk ability is not strong enough. Agrarian credit is restricted by security guarantees. Suggestions on Guangxi agrarian financial development promoting the increase of peasants revenue are proposed aiming at solving these problems:to further optimize the organizing system of agrarian finance and solve rural financial service problems on a multi-level; to improve the agrarian credit risk compensation and incentive mechanisrn; to establish rural capital backflow system; to optimize the agrarian financial ecological environment; to positively promote the innovation of agrarian financial products and serving ways; to face the legal position of private finance in a right way; to deepen the external environment for financial development.