An Empirical Study On Rural Financial Developmnet And Farmer Income Growth In Central China

The central region is the most prominent part of the "three rural issues" in our country,but also the most key problem of "agriculture, rural areas and farmers" in China area, itsdevelopment can benefit the whole of China. The central region is the key and difficult pointfor the problem of "agriculture, rural areas and farmers". A large number of theoretical andempirical studies show that rural areas are existing financial "weakened" and "suppress"phenomenon. With the deepening of reform of China’s rural economy, the central region morepronounced contradiction of supply and demand of rural financial services, and makes theincrease of farmers’ income in central region of the national economy and people’s livelihoodbig problem. Therefore, the rural financial development and farmers’ income of the sixprovinces in central as the research object.Based on the summary and draw lessons from the domestic and foreign scholars aboutthe relationship between financial development and income growth research literature, thearticle expounds the related theory of financial development and income, and rural financialdevelopment scale, structure, efficiency and farmers income growth mechanism, the influenceof the combination of six provinces in central and the state of the rural financial developmentand farmers’ income. Using the econometric model to carry on the empirical analysis, andevaluate the test results, the paper hopes to provide the central region has a reference value foradvice and policy.The empirical part of this article, the first is based on the central six provinces, based onusing Johansen cointegration test, Granger causality test, impulse response function andvariance decomposition, etc., from the middle of the whole surface to analyze the dynamiceffect of the relationship between them. The conclusion is in the long run, the central regionof the structure of the rural financial development, rural financial development scale and therural fixed asset investment have positive promoting effect on farmers’ income growth, therural financial development efficiency is a reverse effect on farmers’ income growth; in theshort term, the central region rural financial structure, the rural financial development scaleand fixed asset investment has positive effect on growth of farmers’ income, but has yet toplay a positive role in promoting financial development efficiency. Second is based on the sixcentral provinces, through the panel unit root test, panel cointegration test, fixed effectvariable coefficient model, the six provinces in central China’s. rural financial developmentscale, structure, and how to influence the farmers’ income are regional differences of the effect, were found in the level of urbanization area relative to the rural financial development impacton farmers’ income is bigger also, as a result, regional authorities need to play a role of policyguidance, encourage scientific rural financial resources allocation, promote the farmers’income.