Research On The Influence Of Rural Microfinance On Farmers’ Income In Shandong Province

In 2022,we will comprehensively promote the key tasks of rural revitalization,and do a solid job in the "three rural" work in the new development stage.In order to continue to promote the stable development of my country’s social economy and rural revitalization,the 2022 Central Document No.1 clearly proposes to increase the number of loans to support agriculture and small businesses,and speed up The reform of rural credit cooperatives thus strengthens rural financial services to ensure that farmers continue to increase their incomes and the rural economy moves forward steadily.At present,my country still has a two-dimensional financial structure in urban and rural areas,the financing of agriculture,rural areas and farmers is difficult and expensive,the rural financial service system is not sound enough,and the coverage of financial services is insufficient.Therefore,Shandong Province is striving to build a "Qilu Model" for rural revitalization,aiming at common prosperity,developing a rural financial environment,focusing on "targeted poverty alleviation",improving the financial service system,guiding low-cost funds to flow to rural areas,and promoting rural population.Continue to increase income to provide strong support for stabilizing the overall situation of economic and social development.This paper sorts out and analyzes the relevant literature on microfinance and its impact on farmers’ income,explores the impact of microfinance on the steady growth of farmers’ income,and aims to promote rural economic development and rural revitalization in Shandong Province.This paper summarizes the relevant theories of microfinance,and analyzes the mechanism of how it affects the increase of farmers’ income.Starting from the actual situation of Shandong Province,it deeply analyzes the development status of microfinance and the growth and structural changes of farmers’ income.Drawing on the comprehensive index system of inclusive finance,12 indicators were selected to establish an evaluation system for the development level of microfinance.Taking this as the core variable,the five types of farmers’ income are the explained variables,and the remaining control variables are composed of economic growth,urbanization development,technological development,degree of opening to the outside world,and policy effect factors.The panel data are tested by LLC,ADF,IPS,and HT to ensure the stability of the data.Using regression models to analyze the relationship between variables,as well as related relationships between Shandong Province,the level of microfinance has a significant promotion of farmers’ income.Based on the empirical analysis results,summarizing and proposed policies proposed from the three aspects of government,farmers and financial institutions.This article believes that the government strengthens the financial management of rural areas,improving farmers’ financial awareness,innovation financial products and services,improves rural financial system,mobilizing the enthusiasm of financial services,and effectively promoting the role of farmers in rural microfinance in Shandong Province.