Empirical Analysis Of The Relationship Between Regional Rural Finance Development And Income Growth Of Farmers

China is a large agricultural country, farmers accounted for the vast majority of the country's population."Three rural issues" related to the sustained and stable development of China's economy. Farmers, agriculture and rural development issues are most concerned in China. Agriculture is the foundation of the national economy.Finance is the core of modern economy. The relationships of finance and farmers, finance and agriculture, finance and countryside is very important. The development of modern agriculture, building a new socialist countryside can not be separated from the effective support of rural finance. In order to promote economy development and maintain long-term stability in rural areas and narrow the income gap between rich and poor in urban and rural areas,it's very necessary to establish and improve the rural financial service system.To boost rural economy, increase employment and income are the central aspects of building a new socialist countryside,and building a good rural financial system is vital to achieve these goals.Especially in the current global financial crisis background, how to make the rural finance system to better promote the income of the farmers is an important question.Because of uneven economic development, the income of farmers and the level of rural finance have many regional differences.Based on the traditional theory of financial development, rural financial development theory and peasant income theory,this thesis firstly conducted empirical comparison of the level of financial development, as well as differences in income growth of farmers in east, central,western and northeast rural areas.Then applying the practical data from 1996 to 2007 and through building Econometric linear regression model,the empirical analysis between the regional rural finance development and farmer income increase has been done.From the model,the paper finds some problems in the relationship of rural finance and the income growth of farmers.Fanally,in response to these questions, profound causal analysis has been done and a brief policy proposal on how to promote farmer income by developing rural finance is referred.