The Empirical Research Of The Relationship Between Rural Finance Development And The Growth Of Farmers’ Income In Hunan Province

Problem of agriculture, countryside and farmers is the issue our Government has been committed to addressing, is the major problem that closely related to the national economic and social development, to resolve the core of the " Three dimensional rural issues" is to address the problem of farmers’income. In the process of comprehensive building a new Socialist countryside in Hunan, how to increase farmers’incomes and improve their standard of living is related to the major topic of economic and social development of the whole province. Since reforming and opening up, Hunan’s rural economic reform has achieved marked success, the rural financial system constantly to be perfect, from the Agricultural Bank of China and the Rural Credit Cooperatives in the early to late establishment of Agricultural Development Bank of China that contributed to the development of the rural economy to a large extent. But we should also realize that the current rural financial inhibition phenomena in Hunan, which has weakened the whole functions of financial system, and financial services is difficult to meet the real needs of agricultural and rural economic development in Hunan province, thereby affecting the growth of the income of the farmers, which is also a very important reason for gradually widening income gaps between farmers’income and income of urban residents in Hunan province, as well as with other farmers in developed areas in recent years.This article is based on farmers’incomes and the current situation of rural financial development in Hunan province to study the role of rural financial development level on the growth of farmers’income. This article based on the review of Nodern Financial Development Theory, Rural Financial Theory and Farmers Income Theory, first with simple of a linear regression model confirmed that there exists linear relationship between Hunan province rural financial development and farmers income growth, then with related data of Hunan province rural financial from1996to2010, through established econometrics multi linear regression model, eventually concluded the relationship equation of Hunan province rural financial development and farmers income, and concluded that Hunan province rural financial development level and Agricultural prices to farmers’income growth have a strong linear relationship between farmers’employment structure as well as the conclusions of the impact on farmers’income growth is very limited. Finally, put forward some suggestions to improve the province’s rural financial development level and increase farmers’income based on the current situation of rural financial development in Hunan province.