Study On The Influence Of Rural Informal Finance On Farmers' Income In Hubei Province

Increasing farmers' income is a big issue for China's agricultural power,which is closely related to the development of rural economy and financial support.But the current rural financing channel is limited,farmers and capital requirements of small and medium-sized enterprises are difficult to get satisfaction from rural formal financial channels,in this case,residents and small and medium-sized enterprises in rural areas in Hubei province has been turned to the informal financial sources,even from the informal channels to obtain the amount of capital is more than the amount obtained from formal financial channels.At present,although the development of rural informal finance has many problems,but in the long run,to make up for the deficiency of rural formal financial,and meet the demand of funds in rural areas is quite good.However,due to the grey or even black property of informal finance,the current government departments and financial supervision departments of Hubei province have suppressed the development of rural informal finance.Therefore,focusing on the rural formal financial development in Hubei province at the same time,need specification and attaches importance to the development of rural informal finance,in order to give full play to the function of rural formal financial complementary role,and promote the development of rural economy and farmers' income growth.This article first theoretical interpretation of rural informal finance and farmers income,this paper introduces the concept of informal financial definition,form and development of theoretical basis,and from the Angle of economics,explained the mechanism of the rural informal financial impact on farmers' income.And then concrete analysis informal financial development in rural areas in Hubei province in the development scale,development speed and the current situation of government regulation and system support and legal recognition,the rural credit system,illegal and criminal activities,loan interest rate control and farmers to the financial problems of five aspects of knowledge,and then to the informal finance in rural areas in Hubei province and the demonstration analysis on the relationship between the farmers' income,a smooth test,cointegration test and granger test.Finally,relevant Suggestions are put forward for the empirical analysis results.