The Study On Empirical Connection Between Rural Microfinance In Liaoning Province And Increase Of Farmers’ Income

From 2004 to 2015,CPC Central Committee and State Council have issued central NO.1 document about agriculture 12 years continuously. As an agricultural country, the population in rural area of China is over 50 percent of the whole country. As the basis of economics, agriculture is related to people’s livelihood even stability of regime, it is the focus of our party, government and people. However, as a delicate industry, agriculture is restricted by its weak cornerstone and long-existed peasant economy, so it’s still the thinnest part of the economy chain. It is commonly existed that in counties infrastructure is lagging, big difference between income. After investigation, the lack of capital is becoming a constraint on development. Therefore, capital supporting becomes the key factor to solve poverty. Rural microeconomics is an emerging financial mode and is aimed at supporting low-income people, individuals and has a property of small amount and unsecured. It helps to solve the difficulty of insufficient capital because of asymmetric information, complicated process and unstandardized guarantees. Rural microeconomics is a innovated mechanism created from developing country. Since 1993 it was introduced to China and had developed to mature financial system and became the key factor of income increase.The study issues on rural microfinance through field research method, literature research and combination of quantitative analysis and qualitative analysis. First, define microfinance and analyze the current condition. By Logit model, select the four farmers’ income variables related to rural microfinance in Liaoning Province Statistical Yearbook, using Eviews software to find the connection among them and then analyze the problems and solutions.Finally, we find that among the four variables, there is a positive function from microfinance and fiscal support but there are also negative factors. Arable land per capita and per capita investment in fixed assets investment caused multicollinearity. The paper will find the problems in rural economy and analyze the solutions to it further.