Research On The Influence Of Rural Financial Development On Farmers’ Income Growth In Gansu Province

Finance is the core of economic development, the development of ruraleconomy cannot do without the financial support. The establishment of a sound ruralfinancial system, has the inestimable value to promote the development and prosperityof rural economy, to promote the development of rural economy, to provide theeconomic income of farmers. However, at present China’s rural economy lackfinancial this drives the engine of economic development, the rural economicdevelopment has been restricted. With the deepening of economic reform in ruralareas, the contradiction between supply and demand of rural financial servicesgradually. Therefore, only by improving the rural financial service level, to promotethe development of the rural economy, increasing farmers’ income.This paper take Gansu rural financial development and farmer income level asthe research object to conduct in-depth research. Gansu is a province located innorthwest of China, less developed provinces, the development of the rural economyand the income of farmers rely mainly on agricultural industry. This paper seeks tosolve the problem of farmers in Gansu province from the perspective of thedevelopment of rural finance, so as to promote the development of rural economy,increase the income of farmers and the rural social stability. This paper is divided intofive sections:The first chapter, introduction. Analysis of the meaning and purpose ofresearch on the development of rural finance of Gansu Province, summarizes theresearch results at home and abroad on the rural financial development, pointed outthis article research technique and the innovation spot.The second chapter, a summary of basic theories. In this paper, thedevelopment of modern finance theory formation and development of in-depth study,introduces the theory of agricultural credit subsidies, the rural financial market theory,imperfect competition market theory and other related financial theory.The third chapter, the rural finance of Gansu province and the present situationof farmers’ income. Analyzes the status and financial development, rural financialsystem in Gansu Province, the problems of financial institutions, on the basis of theanalysis above, the income structure and the standard made the current situation of farmers’ income.The fourth chapter. An empirical study on the effect of rural financialdevelopment to the income of farmers in Gansu province. Establish the verificationmode, Grainger causality test, impulse response analysis on farmers income index andsource data, the empirical results show that growth is positively correlated, Gansurural financial development and farmer income. Therefore, Gansu province shouldstrengthen the reform of the rural financial system, enhance the level of rural financialservices, promote the increase of farmers’ income.The fifth chapter, promote rural financial development countermeasures toimprove the income of farmers. According to the empirical results, analysis of thecauses of rural financial development in Gansu province is insufficient, this paperimprove the multi-level rural finance service system and strengthen the two aspects ofrural financial ecological environment construction to increase farmers income.