Research On The Influence Of Rural Financial Development On Farmers’ Income Growth In Anhui Province

The farmer problem is the core of the "three rural" problem in our country.The key to solve the farmer problem is to improve the farmer’s income.In the past 40 years of reform and opening up,China’s rural economic construction has made remarkable achievements,and farmers’ income level has been greatly improved.However,the income gap between urban and rural areas is still widening,and the growth of farmers’income is relatively slow,which is not conducive to the stability of rural society and the overall economic development.The "three rural" problem needs to be solved urgently.Finance is the core of the modern economy and has the role of capital guidance and allocation.The improvement of farmers’ income and the development of rural economy can not be separated from the vigorous support of rural financial funds.A large number of studies have shown that rural financial development has a certain role in promoting the increase of farmers’ income,but there are still widespread problems in rural areas,such as the low level of rural financial development and insufficient effective use of financial resources,which restrict the rapid increase of farmers’income.Therefore,it is necessary to further study the relationship between rural financial development and farmers’ income.China has a vast territory and complex national conditions,and the economic and financial development levels vary greatly among different provinces.Therefore,when studying the relationship between rural financial development and farmers’ income growth,regional differences need to be considered.Anhui Province is an underdeveloped agricultural province in East China.Its agricultural development is representative in China,and it is also one of the earliest provinces in China to start rural financial system reform.Therefore,studying the impact of rural financial development in Anhui Province on farmers’ income can provide a reference for other provinces and has certain practical significance.This paper will seek to solve the "three rural" problems in Anhui Province from the perspective of rural financial development,so as to promote rural economic development,improve farmers’ income and achieve rural social stability.Firstly,through a comprehensive review of the relevant theoretical literature on rural financial development and farmers’ income growth,this paper explores the impact mechanism of rural financial development on farmers’ income.On this basis,a theoretical analysis framework for studying the relationship between the two is established.Secondly,this paper makes a descriptive analysis of the rural financial development and the income of farmers in Anhui Province,and points out its current shortcomings.Then,based on the actual statistical data of Anhui Province,this paper establishes the VAR model,and empirically analyzes the impact of rural financial development on farmers’ income in Anhui Province through Johansen cointegration test,Granger causality test and impulse response function.From the results of empirical analysis,the following conclusions can be drawn:There is a long-term cointegration relationship between rural financial development and farmers’ income in Anhui Province.The influence coefficient of rural financial development scale on farmers’ income in Anhui Province is negative;the influence coefficient of rural financial development efficiency on farmers’ income is positive;the influence coefficient of rural financial development structure on farmers’income is positive.The Granger causality test shows that the income of farmers in Anhui Province is a one-way Granger reason for the scale of rural financial development and the structure of rural financial development.There is no interaction between rural financial development efficiency and farmers’ income.According to the prediction of the impulse response function,the expansion of rural financial scale in Anhui Province is not conducive to the increase of farmers’ income in the long run.The improvement of rural financial efficiency and the change of rural financial structure will promote the income of farmers.Finally,the paper analyzes the empirical results and gives policy recommendations to further promote the role of rural financial support in the process of farmers’income improvement.These include deepening rural financial reform,improving the rural:financial organization system,curbing the loss of rural financial resources,and strengthening rural financial support for agriculture,improving the rural financial ecological environment,improving the efficiency of rural financial markets.