A Research In The Impact Of Rural Financial Development On Farmer's Non-agricultural Income

Agriculture was the foundation of the national economy.Agriculture,farmers and rural problems affected national economic development.China's rural economic development was slow,farmers' income level was low,urban and rural income had a big gap.Solve farmers' income problem was the key,farmers' income levels affected rural social stability and economic development.The improvement of farmers' income level need rural financial support,large number of studies showed that rural financial development had promote and inhibit effects on farmers' income increase,rural finance function worked properly could improve farmers' income.Rapid industrialization and urbanization made farmers' income structure changed largely,though agricultural income took the dominant place,promotion of non-farming incomes increased farmers' income increasingly significant.It is significant to analyzed the relationship between rural financial development and non-agricultural income.China had a very vast area and different areas had different situations of economic development.Regional differences should be considered when analyzed relationship between rural financial development and non-agricultural income.As a major agricultural province,the level of Heilongjiang Province' agricultural development was representative,it has practical significance to analyze the impact of rural financial development on non-agricultural income.Empirical studies on relationship between rural financial development and non-agricultural income,then put forward measures to increase farmers' income.Firstly,analyzed the present situation of rural financial development and non-agricultural income by the data of 1995-2013,analyzed the impact of rural financial development on nonagricultural income.Used rural financial development structure,scale,efficiency and rural non-agricultural investment in fixed assets to appraise rural financial development in Heilongjiang Province.In a vector autoregressive model,through the unit root test,cointegration test,Grainger pulse response function and decomposition analysis,there is a long-term relationship between rural financial development and non-agricultural income.Through comprehensive analysis,the study showed that rural financial development scale and rural non-agricultural investment in fixed assets had a long-term positive impacts on farmers' non-agricultural income while rural financial development structure and efficiency had a short-term positive impacts and a long-term negative impacts on farmers' non-agricultural income.At last,we should focus on rural financial reform promotion,construction of rural capital flow mechanism,establish competitive rural financial market,develop the endogenous rural inclusive financial.