An Empirical Study Of Hubei Rural Financial Development And Peasants' Income Growth

The core issue of economic development and social stability in our country is problem of countryside, agriculture and peasants. Peasants'income growth is a important problem that concern with China's development. Peasants'income growth can't be separated from the development of rural economy, the development of rural economy need the strong support from rural financial necessarily. But rural areas in China widespread financial restraint at present. Financial services in rural areas can't be satisfied with the needs of development of countryside, agriculture, which affected peasants'income growth. It is a major practical issue before us that through financial deepening to eliminate financial restraint that prevent farmers'income growth to promote the increase of peasants'income.In the course of financial deepening in China rural areas, because of so many differences in economic development among provinces, we must take into account regional differences in rural financial development. And then, we can make different polices in line with regional growth of peasants'income for different regions.At first, this paper narrates the theory of rural financial development. Rural financial development theory experience there states, based on modern financial development and the character of agriculture. Next, based on the phenomenon of Hubei rural financial development and peasants'income, this paper draws a conclusion that the level of Hubei rural financial development is relatively low. And then, this paper makes a practical study of Hubei rural financial development and peasants'income growth. In the long run, the scale and structure of Hubei rural finance have negative effect. The efficiency of Hubei rural finance has positive effect. In the short time, the scale and structure of Hubei rural finance have positive effect and the efficiency of Hubei rural finance has not displayed the positive effect. Lastly, through the examination of Granger causation, there are Granger causation between the scale of Hubei rural finance and peasants'income, between the structure of Hubei rural finance and peasants'income, which indicate that there exist close relation between Hubei rural finance and peasants'income. Hubei rural finance undertakes the important task that promoting growth of peasants'income.