The Influence Of Rural Finance Development And Urbanization On Wage Income Of Farmers

Since the reform and opening up,China's economy continues to maintain high growth,rural residents income continues to increase,the change of income structure and profound changes have taken place including salary income since 2014 has become a rural residents income constitute the most important parts.Sorts out the related literature,the research of the farmers' salary income often contain in farmers' income and other factors,the relationship between the main reflect changes in income structure,human capital,non-agricultural employment opportunities and employment compensation perspective.Finance is the center of modern economy.Urbanization has long been the main driving force of China's economic development.China has a vast territory and regional differences between regions.Based on the above backgrounds,this paper studies the influence and mechanism of the two factors on the wage income of farmers from the perspective of financial development and urbanization.This paper reviews the related literature and theory basis to build a into the population flow and financial development factors of the two economies of theoretical model to predict the urbanization and the impact on the salary income of the rural financial development.By using 2000-2014 provincial panel data,this paper build the panel vector autoregressive model(PVAR)to subdivide the sample data for the national regions,eastern,central and western regions.Using GMM estimation,impulse response function and variance decomposition methods,respectively,the dynamic analysis of urbanization and rural financial development impacts on farmers' salary income,and compare the different action mechanism between regions.The conclusion of this paper shows that the income of farmers' wages has a strong inertia,which directly affects the income of rural residents in the future.In the national area,urbanization has a significant effect on farmers' wage income,but it has not had a significant impact in the central and western regions.Efficiency of rural financial development have a negative impact on farmers' salary income and the influence of financial development scale has the characteristics of the regional differences,mainly in the western region have obvious promoting effect,the effect is not significant in other areas.Based on the above research,this paper argues that the government should pay more attention to the local education development,we will increase support for poor areas and poor families,protect the rights of education,but also should be to do a good job of the local peasant workers vocational training.Secondly,we should accelerate the reform of the household registration system and gradually establish a household registration system based on the residence decision.The government should also focus on the construction of the rural financial system rather than the total amount as a financial work,and develop financial instruments for the activities of rural economic activities.In the end,the national policy should also pay attention to the classification and guidance of different regions while designing at the top level,so that the policies can be more effective.