Research On The Influence Of Rural Finance Development To Farmers' Income In Shandong Province

The issue of agriculture,rural areas and farmers is the focus of our party and government,and the income of farmers is the core of the issue of agriculture,ruralareas and farmers.Shandong Province is a large agricultural province in China.Since the reform and opening up,rural economic development has achieved remarkable results.In 2016,the total output value of agriculture,forestry,animal husbandry and fishery in Shandong reached 932.05 billion yuan,ranked first in the country,the income level of farmers has also rapidly increased,but the economic development in rural areas still lags far behind towns and cities.The income gap between urban and rural residents has further widened.It has severely restricted the enthusiasm of farmers' production and affected the further development of the rural economy.Rural finance plays an important role in supporting and ensuring the growth of farmers' income.The establishment of a benign promotion system between rural finance and farmers' income is an urgent problem to be solved in the process of rural economic development.Therefore,to study the relationship between rural financial development and farmers' income growth,and then to seek an effective countermeasure for rural finance to support the growth of farmers' income,can not be ignored.In China,where regional economic development is still unbalanced,it is necessary to study the relationship between rural finance and peasant income in-depth at the provincial(municipal)level.Most of the current research results focus on the relationship between rural financial development and rural economic growth.The study on the rural financial growth of farmers' income has not been thoroughly studied.This paper sorts out the current situation of rural financial development and farmers' income in Shandong Province.On this basis,a VAR model between the level of rural financial development and farmers' income is constructed.Using the data of rural finance and peasant income in Shandong Province from 1987 to 2016,the internal relationship between rural financial development and peasant income growth in Shandong Province was analyzed.In measuring the level of rural financial development,we selected rural financial development efficiency,development scale,and financial development structure,and set rural education level and industrial structure as control variables.Using impulse response functions and variance decomposition methods,it was found that there were capital outflows in rural financial institutions,and that the support of financial institutions for farmers was not enough.Rural financial development did not play the expected role in the growth of farmers' income,and it needed further development.The formal role of rural formal finance,accelerating the innovation of rural financial products and promoting the construction of rural credit system,etc.,in order to provide more powerful financial support for the increase of farmers' income,and promote the development of rural economy.