An Empirical Study Of The Relationship Between Anhui Rural Financial Development And The Growth Of Farmers’Income

Anhui province is the agricultural province, agricultural population accounts for a large proportion of the province’s population. Since China’s reform and opening up, the economy of Anhui province has maintained rapid growth. But, with the economic development and urbanization process of Anhui province, the three rural Issues problem has not been resolved and the farmers’ income growth is slow. Rural finance as the basic configuration of the most important elements in rural economic development is the key to solve the three rural Issues question and to promote rural economic development.In theoretical part, some related theories and existing literature about financial development and economic growth and the interaction mechanism of the two are firstly summarized. Then the author reviewed the course of rural finance development in Anhui province, point out the current situation and existing problems in the financial development and economic growth of Anhui province. After that, we designed rural economic growth and rural financial development indicators which based on the basic theory about rural economic growth and rural financial development. Through the analysis of the rural financial develop index and the rural economic growth index in the model of unit root test, cointegration test and Granger-causality test, we know that there is a long-term equilibrium relationship between the rural financial development and economic growth in rural Anhui province. Rural financial development can contribute to rural economic growth. Therefore, this article puts forward policy recommendations to promote the development of Anhui rural finance further:deepening the reform of rural finance, improving rural financial environment, strengthening the financial support agriculture.