Rural Financial Development And Farmer Income Growth In Hebei:an Empirical Study

After30years of reform and opening up, China’s economic aggregate has been ranked sthe econd in the world.However, the unreasonable economic structure all over the country, large differences of development stages between the areas, especially the low farmers’ income and the large income gap between urban and rural are the important factors which restrict the further development of our future regional economies. Therefore, how to develop and expand rural economics, increase farmers’ income, narrow the gap of income between urban and rural residents play a very important role in building a harmonious society and a new socialist countryside.Being a complex system engineering, farmer income growth is composed of various factors, of which the rural financial development is the most important one of the supportive elements. Based on this, the article intends to promote the rural financial system construction with reasonable scale and higher efficiency together with research of farmers’ income growth through a more comprehensive study of the relationship between Hebei rural financial development and farmer income growth.This paper mainly makes the systematic research on the relativity between Hebei rural financial development and farmers’ income growth by using the theories of economic growth and financial development, and put forward the constructive countermeasures to advance the rural financial reform and improve the income of the farmers.Through empirical analysis, the main conclusions are:1.Hebei provincal rural finance development and rural financial development efficiency have positive correlation with the increase of farmers’ income.This shows that the increasement of the ratio of Hebei province rural finance development and rural financial development efficiency will help to improve peasants’ income.2.The growth of Hebei farmers’ income is not the Granger causes of rural financial development efficiency, but it is the Granger causes of the rural finance development scale at the10%significance level. Both Hebei provincal rural finance development and rural financial development efficiency are not the Granger causes of farmers’ income growth.3.The positive impact of rural finance development scale will bring substantial positive effect on Hebei farmers’ income, and the influence will continue for a longer period of time which illustrates that the current rural financial development scale had certain effect on the growth of Hebei farmers’ income.Rural financial development efficiency’s positive impact on the income of the farmers in Hebei did not appear in the first period,it had more significant and negative influence in the third period,it went back to the original level in the fifth period, after that it made Hebei farmers’ income increase rapidly, then began to slow down in the nineth period, and the effects almost disappeared in the thirteenth period.All these shows that using the rural loan deposit ratio to measure the rural financial development efficiency’s effect on the growth of Hebei farmers’ income is not obvious in the current stage.