Research On The Impact Of Rural Financial Development On Farmers' Income In China

China has always been a big country in agriculture,and rural economy occupies a very important position in our economy.Therefore,the issue of agriculture,rural areas and farmers is an urgent problem to be solved in the process of China's socialist modernization.After 1978,China's economy developed rapidly in all aspects,but the difference in the quality of life of the people in rural areas and towns has grown.The income level of farmers is low,the growth rate has been lower than that of urban residents for a long time,and the income gap has even expanded.The slow increase in the income level of farmers has also greatly limited the increase in consumption in our economy.The Chinese government has always attached great importance to the issue of agriculture,rural areas and farmers.The Central Document No.1 for more than a decade has guided the work of agriculture,rural areas and farmers as its main content,thus demonstrating its position as "the most important thing in socialist modernization." The key issue is how to increase the income of peasants.The slow growth of farmers' income is very detrimental to the healthy development of China's economy.If we can effectively increase the income of farmers,we can better promote the national consumption of our country and the sound operation of the economic system.Of the many factors that affect farmers' income,the construction of a rural financial system is the key to the key.This paper selects the marginal output efficiency of rural capital investment,the level of rural savings,and the efficiency of savings investment as indicators of rural financial development.The rural per capita net income is used as an indicator of farmers' income.The VAR model is used to describe the relationship between rural financial development and rural income in China.The relationship was analyzed and studied.Research shows that there are stable and significant correlations between the indicators of rural financial development in China and the per capita net income of rural residents in the long run.The level of rural financial development in China has a significant effect on the growth of China's peasants' income,but the impact and effect of different factors have different effects.In the long run,the marginal output efficiency of rural capital investment has the most obvious effect on the per capita net income of farmers,followed by the efficiency of savings and investment,and the level of rural savings has the least contribution to the promotion of farmers' income.Based on the empirical results,this paper puts forward corresponding policy recommendations,suggests that China improve the rural financial system in China,guide the informal development of rural informal finance,improve the financial support system for township and village enterprises,increase the supply of financial services to rural poor groups,and increase the fixed assets in rural areas.The financial support of the project has established a sound rural financial supervision system.