The Analysis Of Measurement On The Relationship Between China's Rural Financial Development And The Farmers' Income Growth

As a large agricultural country, the impact of development of agriculture and the rural economy is essential to our economy. Improve farmers' income levels can enhance the proportion of domestic demand. It can provide effective protection for the national economy continued to grow. There are many factors that affect the farmers' income. The impact of financial factors on farmers' income became clear. Rural finance is the core of modern economy and the rural economy "blood body".It is an important force to support agricultural and rural economic development. It is inseparable from strong financial support to solve the "three rural" issues and promote new socialist countryside construction. Therefore, rural finance need a good support system in order to achieve the optimal combination of agricultural production factors and the better agriculture faster development. Thus, it can achieve rapid farmers' income effect.In this paper, through the summary and draw lessons from the domestic and foreign scholars on the issue of research literature. I put forward own research method and direction.The article expounds on the related basic theory and the mechanism of the rural financial development impact on farmers' income. Rural financial development can be achieved by credit to support agriculture, finance support agriculture, agricultural infrastructure construction in the process of rural employment channels to increase farmers' income, etc.Combining with the current status of development in our country, select the calendar year of rural financial development level index and farmers' income growth related indicators.Using a state-space model tests the time-varying relationship of China's rural finance and farmers' income growth.The empirical results show that there is a long-term equilibrium relationship between rural financial development and farmers' income growth.There is a positive correlation between rural financial institutions'credit ratio and the farmers' income.There is a positive correlation between rural finance efficiency index and the farmers' income.It has a negative correlation between the rural savings ratio and the farmers' income.Rural financial development on farmers' income growth has a certain contribution. Rural financial institutions credit ratio and rural financial efficiency index can promote farmers' income growth. As time changes, the promoting effect first increased and then gradually weakened. Rural savings rate has inhibitory effect to the farmers' income growth.As the change of time, inhibition was enhanced and then gradually weakened.Which shows the rural credit growth has a significant contribution to the growth of farmers' income. It is also indirectly proves that the rural capital investment has a significant effect on farmers' income growth. The premise of production efficiency is upfront capital investment. Rural credit will largely solve the funding problems of farmers. It lays an important foundation for increasing farmers' income.