Study Of The Relationship Between Rural Formal Financial Development And Farmers' Income

Finance is the core of economic development.In the current conditions of economic development,the influence of rural formal financial institutions to "three rural" is more and more important.Farmer's problem is the key of "three rural"problem,and income problem is the key of farmers' problem,so increase farmers'income is the core of solving "three rural" problem.Under the background of "one belt and one road" strategic planning,it needs to be studied for rural formal financial institutions to play their roles,better serve "three rural " and improve farmers' income.Firstly,this paper compares and analyzes current situation of economy,finance and farmers' incomes of "one belt and one road" provinces by means of large amount of data.Secondly,the first empirical part selects 1990-2014 time series data for studying.Results show whether it is "one belt and one road" provinces or are in Eastern,Central and Western regions,long-term equilibrium co-integration relationship exists between variables,and the influence of these factors on farmers'income are clear regional differences.Among them,the scale of financial development has a positive effect on farmers' incomes,but this effect is decreasing from eastern,central to west provinces.Efficiency of financial development on farmers' income of the full sample and eastern province is positive,but is negative on central and west provinces.In addition,improvement of the rural labor force structure and to increasing input in science and technology can also increase farmers' income in varying degrees.Thirdly,the second empirical part takes indicators of financial development for the threshold variable,select 2000-2014 panel threshold regression model analysis of the relevant data.Testing identified a significant threshold effects in models,and threshold number is 2.When take efficiency of financial development for the threshold variable,it has different effects on farmers' income in different interval.When take financial development scale as a threshold variable,with the expansion of financial development and crossed the threshold,its impact on farmers' income gradually varies from negative to positive,and eventually it increases farmers' income.Therefore,how to configure resources according to different stages of financial development in all regions,improve the efficient use of resources,is a serious problem.Overall,the two-part conclusion made a better consistency.Finally,we put forward suggestions from the rural finance support,transfer of rural labor force and agricultural input in science and technology based on the conclusions of this paper.This paper takes 18 provinces of "one belt and one road" as the research object,in order to research the rural formal financial development and the relationship between farmers income.On the one hand,it is the research results of theoretical exposition of the development status and the relevant practical examination of the region.On the other hand,by exploring how to develop the rural formal finance and raise the farmers' income,which can provide reference for policymakers and relevant financial institutions to service of "three rural",explore the precise financial poverty alleviation.