The Research Of The Impact Of The Rural Credit Cooperatives’ Micro-finance In Shan Xi Province On Peasants’ Income

With the opening and reform policy advancing, turn the world upside and down changehave happened in our country.Both city residents and peasants are enjoying the greatachievements in reform and opening up. However, with the improvement of living standard ofthe people all over the country, the gap between urban and rural areas has become veryobvious. Although from2003to2012, the Party Central Committee closed attention to “theagriculture, the countryside, the farmer” problem in the No.1files. But to alleviate the incomegap between urban and rural residents, with that the reason to the problem of farmer’s lowincome is they lack capital the essential factor of production. So, now the farmers how to gainfinancial support need more reflection.Rural credit cooperatives as an important force of rural financial market have innate closerelationship to the farmers. Micro-finance of rural credit cooperatives in rural areas as thefinancial business, support the agriculture, the countryside, the farmer development byever-fount fund. However, whether it can promote the increase of farmers’ income or not.Whether it has serious of problems that people give no attention. We must do furtherinvestigation through farmer family and grass-roots rural credit cooperatives to understand thequestions.The author of the article issued the questionnaires, visited the farmers and the staff of ruralcredit cooperatives in order to get the first hand data. Then, the author designed model,analyzed the data and finally got the conclusion that the rural credit cooperativesmicro-finance had significant and positive effect on the income of farmers. The conclusionthat the empirical findings strongly support to rural credit cooperatives micro-financedevelopment and the necessity to further expand the scale. The farmers were told explicitlythat micro-finance provide a way to increase their income. The farmers should be encouragedto credit.