A Statistical Analysis On Relationship Between Rural Financial Development And Peasants’ Income Growth In Our Country

The issue of peasants’ income growth is an important problem relating to nationaleconomy and the people’s livelihood. Peasants’ income growth can’t be separated from thedevelopment of rural economy, and the development of rural economy needs the strongsupport from rural financial necessarily. With the further deepening of the rural finacialsystem reform, how to form a benign and interactive relationship aiming to prosperingdevelopment of rural finance and increase of peasants’ income, is an important and practicalissue needed to be solved.In this paper, under financial development theory’s guidance, at first, it begins with thetheoretical analysis on relation between rural financial development and peasants’ incomegrowth, analyzes the problem being in the process of rural financial development, sets forththe reason that influence the mutual integration and mutual promotion between them, andcomes to a conclusion that financial repression is a crucial factor that restricts peasants’income growth. Secondly, it analyzes the current situation and variation tendency of ruralfinancial development and peasants’ income growth by descriptive statistics, the result showsthat rural financial development is characterized by “high increase and low efficiency” in ourcountry, that is to say, rural financial development depth expands quickly, but there are stillproblems such as too simplification of structure, low rural savings-investment conversionefficiency and the backwardness of rural credit development level; Peasants’ per capita netincome maintains sustained growth, but the income gap between urban and rural residents ison the increase. Secondly, it divides the rural financial development into rural financialdevelopment scale, level, structure and efficiency, takes rural fixed assets investment rate asthe control variable, to explore the relationship between the rural financial development andpeasants’ income growth furtherly by Johansen cointegration test, the vector error correctionmodel, granger causality testing, impulse response function and variance analysis, and putforward the opinion that rural financial development should pay equal attention to “quantity”and “quality”, in other words, it should strengthen efficiency of financial support for agriculture in the process of the rural financial scale expansion to achieve a benign andinteractive relationship between rural financial development and peasants’ income growth. Atlast, in combination with the actual conditions of the rural financial development, it putsforward suggests rightly that how to develop rural finance in our country in order to makepeasants’ income growth.