Research On The Impact Of Inclusive Finance In Rural Areas On Farmers' Income

Rural inclusive finance is an important part of financial system.The rural inclusive finance has a directly or indirectly impact on farmers' income.As a big agricultural country,solving the farmers' problems is the most important issue in China.The key to the farmers' problems is how to improve the income of farmers and improve their quality of life.In 2014,the General Office issued the “Several Opinions on the Development of Financial Services for Agriculture,Rural Areas and Farmers”.The opinions pointed out that it is necessary to further enhance the service capacity and level of rural inclusive finance,and achieve the win-win development of rural finance and “agriculture,rural areas and farmers”.In October 2018,the China Banking Regulatory Commission issued a report on China's Inclusive Financial Development,stating that the inclusive finance will focus on the gaps and shortages of financial services in rural areas,and win the "last mile".The rural inclusive finance has a decisive influence on the promotion of precision poverty alleviation strategy.Therefore,researching the rural inclusive finance has a far-reaching significance.In order to study the development level of rural inclusive finance and its impact on farmers' income,this paper uses the macro statistics of 31 provinces and municipalities in 2010-2017 as a research sample to measure the development level of rural inclusive finance,three dimensions and eight indicators of the availability,usage and quality of financial services were selected,and the coefficient of variation was used too.The regression analysis is also used to analyze the total sample and subsamples.The actual impact of the development of the inclusive finance on the farmers' income,and then put forward relevant recommendations,in order to better improve China's rural inclusive financial system and effectively raise the income level of farmers.This study draws several conclusions through this research:(1)Through the calculation of the RIFI in the country,it is found that the development level of rural inclusive finance in the country is basically fluctuating growing year by year,and the RIFI in the eastern region is relatively higher.While the central and western regions is lower,and the RIFI has a regional difference;(2)Through the empirical discovery,RIFI is significantly positively correlated with farmers' income across the country;(3)Rural inclusive finance in the eastern region has actively promoted the growth of peasants' income,which has a positive effect;However,the rural inclusive finance in the central and western regions has no significant effect on peasants' income.There is a regional difference in different rural areas.(4)In terms of the control variables,the three major factors such as regional economic development level,agricultural industrialization level and financial support have a significant impact on farmers' income.The research in this paper not only provides empirical evidence for the development of the rural inclusive finance and the effect of increasing farmers' income,but also enriches the research on the influencing factors of farmers' income and provides theoretical guidance for the improvement of farmers' income in China.According to the research conclusions of this paper,the development of rural inclusive finance has played a positive role in promoting farmers' income.However,due to the generally backward economy in the central and western regions of China,the rural inclusive financial system is still not perfect.The increase in farmers' income is not significant.To this end,the author proposes relevant policy recommendations from the aspects of increasing the coverage of rural inclusive finance,narrowing the financial development gap between regions,improving the rural inclusive financial system,and strengthening financial support,with a view to narrowing the eastern and central western regions.The rural inclusive financial development gap between regions promotes the further improvement of farmers' income levels.