Research On The Relationship Between Rural Non-formal Financial Development Of Western Region And It’s Farmer’s Income Growth

As the world’s agricultural country, how to increase farmers’ income, improve farmers’ quality of life has always been the focus issues of the Chinese government. To promote the development of rural economy, increase fanners’income cannot live without the necessary financial support.The imbalance of Chinese economic development of urban and rural area leads to the imbalance of Chinese financial development. Especially in Chinese western rural areas, such as our financial system is insufficient, the rural funds is shorted seriously, it’s hard for farmers to get funds form the formal finance they are laid the foundation for the non-formal finance. In Chinese western rural financial system, the non-formal finance has played a tremendous support role for economic development. Compared to the fonnal financial, advantages of the non-formal financial make it is the first choice for the fanners to secure the funding, on-formal finance has a significant role in promoting farmers’ income growth.In this paper, we explained the relationship between the rural non-formal finance of western area and it’s farmer income based on rural financial theory, theory of financial repression and other related theory, described the current situation of rural non-formal finance in the western region and its existing problems. We analyzed the relationship between the rural non-formal financial development of Chinese western area and farmer income growth and income gap of farmers through using the statistical methods of empirical. Then we put forward the relevant countermeasures to promote the western region of rural non-formal finance development according to the empirical results.