Research On The Influence Of Rural Financial Development On Farmers' Income Growth

Agriculture, rural areas and farmers is always a fundamental problem relating to people's livelihood. With the development and improvement of economic level, China's " Agriculture, Rural areas and Farmers " from solving the basic problems of food and clothing gradually transformed into development issues to promote farmers' income. China, as a large number of rural population in developing countries, farmers' income steadily increased farmers to prosperity on the basis of, while wealthy farmers are the foundation of the whole society of common prosperity. In recent years, through the work of central and local government,the economy of rural have achieved big development.After the implementation of the central governments'requirements about "guarantee deposits of financial institutions in rural areas is mainly used in rural areas," the network of rural financial services are growing, especially in rural areas, the income gap between urban and rural gradually narrowing. At the same time on their achievements, some difficult problems and deep contradictions gradually revealed, for example, rural areas have fewer financial institutions, farmers lack mortgage collateral and the higher threshold for loans and so on. In addition, the outflow of funds has become a rural problems. In the long run look, Because the development of agriculture and farmers' income are multiple factors,so it is unrealistic to solve problem on government to solve outstanding problems.Therefore, this article will focus on Rural Financial Development on the roles of farmers' income.Due to the different level of regional economic, the financial development between regions and urban and rural are different. As the economic development country, the financial development between southern Jiangsu and northern Jiangsu has big gap, Lianyungang is in the northern of Jiangsu,so ite economy is lagging behind.A large proportion of agricultural in this city, and the city has a very low degree of agricultural mechanization, industrialization is lagging behind, so it is difficult to achieve industry to subsidize agriculture.First, this paper describes the background and significance in the absorption of outstanding domestic and foreign literature on the formation of the framework of this paper's own article, the research methods and the innovation; Second, based on the analysis of rural financial development and farmers' income growth related theory, described the development and the changes of the rural economy and the income of farmers in rural of Lianyungang City, analyzed the development process of Lianyungang Rural Financial Problems, such as formal rural financial institutions can not meet the needs of users, the development of non-formal financial institutions are not standardized, rural financial products and services is lagging behind, Poor environment for the development of rural finance.Third, through the empirical analysis, this article use Eviews software to finishing and modeling, based on the ADF test, EG two-step test analysis and Granger causality test to study the impact of Rural financial development on farmers' income,including the depth of the affect, causality and lag phases. This article also found some following questions that during the investigation, such as rural capital outflows, too little government support and so on. Fourth, this article presents recommendations at the end, including promoting the construction of rural financial system, playing a leading role in the formal financial, guiding the development of the informal financial organizations, promoting the rural credit system construction and optimizing capital allocation in rural areas.