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

In the process of building new countryside in our country,the issue of agriculture,rural areas and farmers is still the object of great concern to our government departments and the broad masses of our people.The Central Committee of the Communist Party of China(CPC),which promulgated the three rural issues for 14 consecutive years,released first policy document of 2017 and clearly pointed out that agricultural efficiency,farmers' income and rural green can be achieved by accelerating rural finance innovation,the reform of financial support agriculture investment mechanism and other major initiatives.The starting point of this paper is consistent with the information conveyed by the policy document,that is,there is some influence mechanism between farmers' income and rural financial development,and rural finance is also one of the factors that affect the income of farmers.The problem of farmer's income is reflected in the two aspects of farmer's income scale and structure.From the perspective of rural financial development,this paper studies how to affect the three aspects of farmers' income.Therefore,it is of great practical significance to solve the problems of rural financial reform and farmers' income.Based on the existing theories of rural finance,the article measures the level of rural financial development from three aspects: scale,structure and efficiency.From the perspective of rural financial development,the two aspects of farmers' income are the object of study.This paper examines the impact of rural financial development on the income of farmers in China.In the study of the impact of rural financial development on the scale and structure of farmers' income,the paper first analyzes the influence mechanism of rural financial development on the scale and structure of farmers' income.Secondly,based on the production function model,the urbanization rate,agricultural efficiency and rural investment level of the three control variables,and with the help of Chinese 28 provinces and cities in 1994 to 2015 panel data fixed effect model on the impact of the empirical analysis,the test results are: the overall scale and source offarmers' income is positively related to the scale of rural financial development,and negatively related to the structure and efficiency of rural financial development,that is,the scale of rural financial development is conducive to improving the overall income level of farmers and the income of each source.While the structure and efficiency of financial development on the increase of farmers' overall income and each source has an adverse effect.Finally,based on the existing problems in the process of rural financial development in China,and on the basis of the conclusion of the study,this paper puts forward the policy suggestions from the perspective of the scale,structure and efficiency of rural financial development to further deepen the rural financial reform and solve the problem of farmers' income.It is suggested that the scale of rural finance should be moderately expanded,the rural financial development structure should be improved,and the efficiency of rural financial development should be improved to prevent the outflow of rural capital.