An Empirical Study On The Relationship Between Rural Microfinance And Peasant Income Growth In Hainan Province

Whether past or present,our country is an agricultural country,rural population accounts for a large proportion,accounting for more than half of the population in China,and it has always been based on the lifeblood of national economy and agriculture.The development of agriculture to social stability,and even the society as a whole is of great significance to the people's livelihood,government and society from all walks of life the focus of attention and discussion is the party.However,agriculture as industrial solid foundation,which belongs to the weak industry,on the economic growth is often a lack of development,investigate its reason,by small farmers may be a long term business constraints,leading to rural lack sufficient funds to supply,rural will the lack of effective investment,infrastructure and supporting facilities behind,this leads to a huge income gap between urban and rural areas,and this problem is more and more prominent.After the analysis of the data,the lack of investment funds in rural areas is widespread,which makes the rural financial development unsustainable,which has seriously hindered the rural economic development.Therefore,we need to increase investment in rural areas and increase the supply of funds in rural areas,so as to effectively help farmers raise their income and lead a happy life.And rural microfinance is a rural support which has emerged in recent years,to help the poor financial service mode,the aim is to help the class for the rural poor live in rural areas,such as individual and industrial and commercial door,small business owners and relatively low income class provides money doing business needs.Its basic features for small amount,don't need a mortgage,do not need to guarantee,etc.,can alleviate farmers can't normally receive money supply caused by the thorny issues such as money supply does not conform to the standard or the qualification is not in conformity with the effective access to information,loan formalities trival,not caused by information asymmetry and so on.Rural microfinance was first developed in developing countries such as Bangladesh.It is a mechanism for lending to farmers to help farmers with loans.Microfinance covering scope is wide,for most farmers,to mobilize capital turnover,development prospect is good,can inject capital in rural areas,convenience of farmers from the production and business operation way to capital,supplement the rural financial system,and to increase farmers' income,conducive to rural economic development better.This paper will understand the literature on rural microcredit and peasant income through the literature research method,and get an in-depth understanding of the internal relations between the two literatures.Then through to the farmers' income in hainan province and analyzed the actual situation of microfinance,using empirical research methods,build LOS regression model,in hainan province rural microfinance is how to affect farmers' income increase for further analysis,and then according to the analysis of the above,discusses main problems of rural microfinance of hainan province,and proposed the consummation microfinance,and countermeasures and Suggestions of improving farmers' income.Empirical analysis shows that some selected variables are not significant,such as per capita fixed asset investment and per capita fiscal support.However,the amount of rural micro-credit issued by hainan province and the cultivated area per capita can raise the income level of farmers.On the basis of empirical analysis,this paper will analyze the problems faced by rural microfinance in hainan province and propose corresponding solutions.