The Impact Of Rural Credit On The Growth Of Farmers' Income In Hunan Province

The issue of agriculture,rural areas and farmers has always been an important issue related to China's social stability and prosperity.Since the State Council issued No 1 Central Document at the core of the "three rural issues" in 2004,the "three rural issues" has rapidly become the number one problem that the Chinese government needs to solve.In 2017,No 1 Central Document continued to lock the "three rural issues",and further promoted supply-side reform in agriculture as the main line of agricultural and rural work in the new historical stage.Since the 18th CPC National Congress in 2012,general secretary Xi Jinping has published a series of important speeches on the issue of " three rural issues " on many occasions,and deeply expounded some important issues of direction and strategy in the advancement of rural reform and development.Hunan Province,as a major agricultural province in the central region,actively responds to the work requirements of the party and the state,promotes the reform of the rural financial system,and promotes the upgrading and transformation of agricultural development.However,the infrastructure of rural areas in Hunan province is backward for a long time,and it is limited by natural conditions,and the agricultural base is weak.The agricultural production is facing a serious shortage of funds,and the development of rural credit business can provide effective fund support for farmers.Based on the actual situation in Hunan Province,this paper studies the development of rural credit business in Hunan Province,aiming at improving the credit financing environment in Hunan province and promoting the development of rural economy.Based on the existing literature research,this paper studies the impact of rural credit on Farmers' income growth in Hunan province.First,it expounds the background and significance of the article.As an effective tool for poverty alleviation,the rural credit business has come into being in the context of the "three rural issues",which plays an important role in promoting the farmers' poverty reduction and income increase.Then,it comments on the research status at home and abroad,and puts forward the innovation of this article.It also introduces the framework and research ideas of the article in detail.Then,it summarizes the connotation and characteristics of rural credit,defines the concept and classification of farmers' income,and analyzes the theoretical basis for rural credit to increase farmers' income,including the general equilibrium theory and the theory of economic growth.Then,from the actual situation in Hunan Province,this paper analyzes the status of farmers' income in Hunan and the development environment of rural credit business,and expounds the internal mechanism of rural credit affecting the increase of farmers' income,that is to promote the increase of production and income through the savings-investment transformation function and the increase of spontaneous investment demand.In view of the results of the theoretical analysis,using the panel data analysis in econometrics,the farmers' per capita credit line,the farmers' per capita net income and four data variables related in the cities and states of Hunan province were selected in the last ten years.First,ensure the smoothness of statistical data through LLC test.Then regression model was used to analyze the correlation between variables and farmers' income,and the robustness test is carried out by the GMM model.It is concluded that the per capita credit line of farmers has a significant positive impact on the per capita net income of farmers.Finally,based on the results of theoretical analysis and empirical analysis,some relevant policy suggestions are put forward from the five aspects of increasing investments in rural fixed assets,strengthening financial support for agriculture,promoting the reform of the rural land property rights system,increasing rural financial institutions loans for farmers,and improving the rural credit insurance mechanism to make Hunan province rural credit play key roles in increasing farmers'income.