Effect Of Rural Financial Development On Farmers’ Income

Reform and opening up 30 years ago, in the process of social and economic development, urban and rural residents income gap widens problem increasingly remarkable. The cause for this problem has a lot of, the rural financial development is one of the important link. For ordinary people in the countryside, and its financing is usually three ways:first, by borrowing money from their relatives and friends and rural neighborhood; Second, to the formal rural financial institutions (such as the agricultural bank, rural credit cooperatives, postal savings bank, etc.) loans; Third, in the case of the first two are not working in the informal financial institutions loans. And among the three, especially in the second largest and most professional financing channel and the farmers also need more formal financial institutions in funding needs help, but in reality, it was to expect large difference.By geographical environment, development time length, the influence of such factors as differences in different areas of the rural financial development in our country, but the common rural financial market, such as energy shortage, formal financial does not reach the designated position, other commercial financial institutions are reluctant to efforts to support agriculture, rural credit cooperatives reduce serious problems, such as, these problems have restricted the healthy development of the rural financial system, affected the rural economy of the country.First, on the basis of domestic and foreign research dynamic, based on the current situation of rural finance and the income of farmers in shandong province, analyze the correlation between them, the basic situation of shandong province rural financial development.Second, on the analysis of the rural financial development situation of shandong province and shandong province, on the basis of farmers’ income growth, the rural financial development in shandong province, and the relationship between the farmers’ income growth and the empirical test. Selected the shandong province from 1980 to 2013, a total of 34 years of economic and social development data, using the unit root test, co-integration analysis and granger causality test empirical analysis on the rural financial development in shandong province’s impact on the farmers’ income growth.Finally, based on the above analysis, this article is to promote the farmers’ income growth of shandong province put forward some Suggestions. Will expand the scale of rural formal financial demand and improve the level of the supply of rural formal financial services put forward several Suggestions. Deepening in shandong province rural financial reform and improve the rural financial system, improve the rural financial ecological environment of shandong province, strengthening rural financial support agriculture in shandong province.