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

Located in the northwest of China, the economic and social development of Gansu province lags behind other areas of China. Especially the increase in financial industry is slower than that of other areas. The problems that many parties face with for a long time are how to build a positive interactive relation between the rural financial development and the farmers’ income of Gansu province, as well as how to improve the incomes of farmers in Gansu province by deepening the rural finance.Based on the financial development, this paper aims to analyze the influence of rural financial development on the farmers’ income from the aspects of the efficiency, the construction and the scale of financial development. The rural financial development has great effects on the real economy and then affects local farmers’ income. With the economic and social development in Gansu province, the author takes the grey correlation analysis as the research method, and hopes to find the solutions to improve farmers’ income by analyzing the data ranging from 1997 to2013.The main conclusions of the paper are as follows:Firstly, the relevancy of rural financial efficiency with the rural per capita net income in Gansu province is the highest. Its correlation value is 0.78, which means that the income of local farmers could be increased quickly as long as the efficiency of the rural finance could be developed.Secondly, the relevancy of rural financial construction with the rural per capita net income in Gansu province is the lowest. Its correlation value is 0.54, which means that the leading role that township enterprises play on the income increase of local farmers is not outstanding. With the inadequate support of rural financial system, township enterprises cannot meet their financing needs, which causes the development of these enterprises is lagging and slow, and then their stimulation to local economic and income is not obvious.Thirdly, the rural financial scale has a closed relation to the rural per capita net income inGansu province. Its correlation value is 0.64, which means that the rural areas of Gansu province are lack of financial resources. In other words, the development of rural real economy greatly relays on the financial resources. The continuous improvement on the loan balance in rural areas is required to fully support the development of rural real economy.