Analysis Of The Impact Of Rural Finance On Farmers' Income Growth In China

2020 is the year in which China wins the “Struggle to Fight Poverty Alleviation”and the key year for achieving a well-off society in an all-round way.The Party Central Committee has paid close attention to the issue of “agriculture,rural areas and farmers ”.The core problems to be solved in agricultural policy,and raising farmers' income is the key to solving a series of problems.Farmers 'income comprehensively reflects the state of rural economy and market-oriented development level.Finance,finance,education level,and industrial structure are all factors that affect farmers' income.However,in the long run,the role of rural finance has become increasingly prominent.The important foundation of economic development is capital.The increase of farmers' income depends on the rural economy,and the rural economy is inseparable from the support of rural finance.In the case of a large income gap between urban and rural areas and the outflow of rural funds,China should pay more attention to the role of rural finance.In theory,rural finance,as an important capital investment in rural areas,should play a role in increasing farmers' income.However,in reality,due to the large differences in the development status and income of various regions,the state has increased financial support for the western region.On the one hand,the growth of farmers' income in the western region is still slow.How to effectively play the role of rural finance in promoting farmers 'income has been a problem we have always paid close attention to.This article analyzes the impact of rural finance on farmers' income in China through theoretical and empirical analysis,compares the eastern,central and western regions,and seeks to promote the efficient and rapid transformation of rural finance into Investment method to achieve coordinated development of the region.Firstly,the current situation of rural finance and income is analyzed.This paper gathered the relevant data into a chart and found that the rural financial institutions have limited supply and cannot meet the needs of agricultural production and farmers for credit funds.The supply and demand quotas are not connected,the supply and demand show an imbalance,and the use of credit funds is inefficient.The phenomenon of capital outflow is serious;secondly,it analyzes the income of urbanand rural residents,the consumption of farmers,and changes in the structure of rural income in recent years: the per capita net income of rural people in different provinces varies greatly,and the income gap between urban and rural residents has gradually widened.Eighty percent of it is used for living consumption.The source of income is increasingly dependent on wage income.The proportion of family income has declined.The proportion of property income as a proxy for wealth has always been low.Secondly,based on the analysis of the production function model and empirical model,the variables selection and sample selection are explained,the financial development scale is selected as the core explanatory variable,and the other four control variables that may affect farmers' income are introduced.In the overall situation,financial development has a significant growth effect on farmers 'income;considering the differences between rural finance and farmers' income in China's provinces,cities,and regions,further analysis of the eastern,central,and western regions: the impact of rural financial development scale on income in the eastern region It is more significant that the efficiency of financial use in the central region has a more significant impact on income.The level of rural financial development in the central and eastern regions is positively correlated with farmers' income,while financial development has played the opposite role in the western region.Finally,this paper compares and analyzes the empirical results of rural financial development in China and different regions,and puts forward specific recommendations.