A Study Of The Relationship Between Rural Financial Development And Farmer Income Growth In Shandong

At present, the "three rural" issue has become an important issue which restricts the overall development of economy and society. In order to further promote the overall development of rural economy, it is imperative to solve the "three rural" problem. The key to solve the "three rural" issue is to improve the income of farmers. So the relationship between the rural financial development and farmer income growth, to explore the rural financial support for rural economic development of effective measures, to solve the "three rural issues" and promote the all-round development of the rural economy has important significance.Most of the previous studies mainly take the country as the research object, and rarely involve the specific provinces. This paper studies the relationship between rural financial development and farmers’income in Shandong province from the provincial level. Shandong Province is the country’s major agricultural province, in recent years, accounting for more than 9% of the national GDP. And in all the provinces ecological-economic output value accounts for the proportion of the national comparison, Shandong Province ranked first, which is the better representation In reviewing the domestic and foreign related research and on the basis of Shandong Province rural financial development and farmer income situation. First of all, the rural financial intermediation ratio, rural financial credit ratio and rural financial development structure are the indicators in order to measure the level of financial development in rural areas. Secondly, it constructs the VAR model between rural financial development and farmer income, empirical analysis of the relationship between rural financial development and farmer income growth. The study found that the relationship between rural financial development and farmer income growth is not positive correlation. Rural financial development does not effectively promote the growth of the income of the farmers. Finally, based on the findings, we made policy recommendations to promote farmers’ income growth, improve rural economic development.