An Empirical Study On The Growth Of Farmers' Income In Rural Finance In Henan Province

At present, China nearly half of rural residents, but the economic contributionof the first industry is only about5%,the rural economy is a weak link in thedevelopment of the national economy. How to increase farmers’ income, narrowingthe income gap between urban and rural areas has become a social problem. In viewof the current enterprise in rural areas, economic development is relatively backwardstage less situation, in the next stage, the development of farmer income growth willlargely depend on the rural finance. Henan province is agricultural big province,"three rural" problems are more serious, after years of development, the income levelof rural residents in Henan Province, the financial industry and has a greater degreeof improvement. The development of rural finance to promote the growth of farmers’income in a certain degree，but there is a phenomenon of financial repression duringthe process of financial development in rural areas of Henan province, thedevelopment of rural finance is not very effective to promote the improvement offarmers’ income level. Therefore, this paper combined with the rural financialdevelopment indicators of the study on the income of rural residents in Henanprovince.This paper combines the regression model and the vector auto regression model,using the data of1990-2012, mad the empirical research on the rural financialdevelopment of Henan province on the impact of the growth of farmers’ income.This paper choose the development of the rural financial development scale, theefficiency of the rural financial development index and the structure of ruralfinancial development indicators to measure the rural finance of Henan Province.Through regression analysis, the efficiency of the rural financial development indexand structure of rural financial development index has a promoting effect on thegrowth of farmers’ income, but the scale index of rural financial development onfarmer income growth inhibition. In a vector autoregressive model, through the unitroot test, cointegration test, Granger causality test, Grainger pulse response function and variance decomposition analysis，there is a long-term cointegration relationshipbetween Henan rural financial development and farmer income growth, during thecommon function of the three indicators，it is conducive to the farmers’ income levelresidents to improve the development of rural finance in Henan Province，but in thethree variables in bidirectional Grainger reason only between financial efficiencyindex and increase the income of farmers, at the present stage, to improve theefficiency of rural financial institutions to promote the growth of farmers’ income isthe most significant, but in the long run, the financial structure indicators of farmerincome growth of the largest contribution.Through comprehensive analysis, this paper thinks that We should focus onsolving the rural loan demand, improve the efficiency of rural financial institutions、Optimize the structure of rural financial development, increase financial support fortownship and village enterprises and the rural area special project、Rich rural currentfinancial system and guide the healthy development of the rural folk finance.