The Empirical Research Of Financial Development On Peasants’ Income In Wulingshan Contiguous Destitute Area

The peasants’ income is the foundation of rural economic development, and is the core of the Problems about Agriculture, Rural areas and Peasantry. The continuous growth of the peasants’ income is the quantitative process of poverty alleviation for the peasants, is the precondition of balancing urban and rural development, narrowing the development gap and sharing the fruits of reform and development. Therefore, the research on the problem of peasants’ income has been the focus of the society from all walks of life. Considering the important position of the financial development in modern economic society, this paper attempts to analyze the effect of the financial development on peasants’ income,and provide theoretical reference and empirical basis for the reform of financial system and the increase of peasants’ income.Based on the concept definition of financial development and the peasants’ income,the paper determines the relevant quantitative indicators, which helps for the further research. And then, taking the Wulingshan Contiguous Destitute Area as the research object, the paper gives out the present situation analysis, the theoretical analysis and the empirical analysis aiming at the relationship between the financial development and the peasants’ income. During the analysis process, the study deepens layer by layer. Based on the present situation analysis, the paper draws a preliminary conclusion. Theoretical part constructs a theoretical model on the essence of the Endogenous Growth Model and gets three major conclusions. Empirical part, using some econometric methods, such as Static regression, Dynamic regression, Cross-term regression, Sub-regional regression,Quantile regression and so on, studies the relationship between the two via a panel data of 71 counties in Wulingshan Contiguous Destitute Area from 2001 to 2013.Finally,according to the research conclusion, the paper forwards several policy proposals..Study has shown that the effect of financial development in Wulingshan Contiguous Destitute Area on the peasants’ income is very sophisticated. On the one hand, the rapid expansion of the financial scale help for the increasing of the peasants’ income, and thepromoting effect appeared a increasing trend. On the other hand, the financial efficiency contributes to the increasing of the farmers’ income firstly. Afterwards, it will hold back the growth of peasants’ income, which has an increasing trend. Generally speaking, the interaction between the financial scale and the financial efficiency is a negative effect on increasing farmers’ income. In addition, economic development, fixed asset investment,and financial support for agriculture have a significant positive effect on peasants’ income, but urbanization, industrial structure, and agricultural modernization have a negative but not significant impact on it. Finally, the paper puts forward some suggestions to improve the peasants’ income from the finance’ point of view.