The Impact Of Rural Financial Development On Peasants’ Income Of Chongqing

The problem about countryside,agriculture and peasants has been considered as the theme and Peasants’ Income as the keyword in the Document NO.1 of the Central Government for 12 years since 2004.Solving the problem about countryside,agriculture and peasants depends on the development of rural economy, and the ultimate invention of economic development is to promote peasant’s income,to narrow the income gap between urban and rural areas,to maintain social stability,and the whole social economy goes forward. There so many influence factors of peasants’ income, rural finance impacts on the peasants’ income is especially important as a blood relation of the rural economy development.In this study, the data of finance and income of Chongqing from 1997-2014 has been used to analysis the current situation of rural financial development and peasants’ income,and explore the reason that what results in peasants’ income from the perspective of rural finance. On this basis,to analysis the savings rate in rural areas, the scale of rural finance, the rural financial efficiency and the rural financial structure effect on the right to rural peasants’ income and its sources of Chongqing. Firstly, using state-space model for dynamic analysis of rural financial development and peasants’ income of Chongqing; then using VAR model, Johansen test, Granger causality test,impulse response function and variance decomposition to analysis the relationship between rural financial development and peasants’ income sources, the following conclusions:The rural financial development and peasants’ income and its sources of Chongqing exist cointegration relationship, rural financial development has a negative impact on peasants’ income. The effects of Chongqing rural savings rate of the average income of peasants is positive;The scale of rural financial development and peasants’ income has a significant negative effect; the impacting on efficiency of rural financial development, rural financial structure and the income of peasants are negative effect,except for a few years.The VAR model analysis of the Granger causality test showed that there is only one interaction between rural financial development and the income of peasants, namely two-way Granger causality exists between rural savings rate and the wage income of peasants;Meanwhile, the rural financial structure is wage income of peasants and peasants’ transfer income unidirectional Granger cause.According to the impulse response function and variance decomposition of the forecast, the advancement of rural savings rate in the long term will promote the increase in wage income of farmers, changing the rural financial structure that is to increase agricultural loans to rural residents will wage income and transfer income cut back.Based on these empirical findings, the paper put forward four suggestions: First,improving the rural financial system, strengthen financial innovation; second is to improve the efficiency of rural finance, improve capital allocation function; Third,optimize the rural financial structure, improve wage income of farmers; Fourth, increase policy support for agriculture, to create a favorable financial environment.