Study On The Influence Of Rural Financial Development On Farmers Income Growth In Shandong Province

Since the 18 th National Congress of the Party,the CPC Central Committee with Comrade Xi Jinping as the core has put forward a major political task of achieving all the poor people out of poverty by 2020 under the current standards.The party and the state have attached great importance to the issue of "agriculture,rural areas and farmers" to a new height.Under the strong leadership of the Party Central Committee,the rural economy has developed rapidly in the past five years,and the number of poor people has decreased by nearly 70 million,making remarkable achievements.The rural financial development,which provides support for the rural economic development,is still lagging behind.Compared with the urban financial development,the financial system in rural areas is not perfect,and the financial products and services are single.The backwardness of rural financial development has restricted the development of rural economy and the increase of farmers' income.In recent years,the government has attached great importance to the development of rural finance and issued a series of policies to support it.The rural financial development environment has improved significantly.However,the problem of the inefficiency of the rural financial market has not been fundamentally changed.The reason is that it has not broken through the institutional constraints of the traditional financial system.Since 2006,governments at all levels have set up new rural financial institutions under the support of policies,and approval for the establishment of new rural financial institutions is an important measure to promote the development of rural finance in China,which not only improves the rural financial system.It also creates a good environment for farmers to increase their income.Chinese scholars have accumulated some achievements in theory and practice in studying the impact of rural financial development on the growth of farmers' income.It is based on the provincial panel or municipal panel data as a sample to study the impact of rural financial development on the growth of farmers' income.Based on previous studies,this paper mainly innovates from two aspects.Firstly,the county(city)data is used as the sample.Counties(cities)are divided according to the degree of economic development.County(city)is the main place for rural financial development and the main gathering place for rural residents.The conclusions obtained from the study based on county(city)data are more persuasive.Secondly,when measuring the development of rural finance,the impact of the establishment of new rural financial institutions on rural financial development is taken into account and incorporated into the model.In order to measure the development of rural finance more comprehensively,this paper draws the following conclusions: first,The establishment of new rural financial institutions can significantly improve the income of farmers in economically developed counties(cities and economically less developed counties).Second,the sponsors of new rural financial institutions are rural credit cooperatives.It has a positive correlation with the increase of farmers' income.Thirdly,the efficiency of rural financial development and the rate of rural financial correlation have positive U-type relationship with the growth of farmers' income.The research in this paper has some theoretical and practical significance.From the theoretical point of view,it not only proves that the efficiency of rural financial development and the rural financial correlation rate have inverted U-shaped relationship with the increase of farmers' income.It also proves that the development of new rural financial institutions can promote the growth of farmers' income,improve the related research results.From the practical significance,from the point of view of the government,put forward policy recommendations for the development of rural finance in Shandong Province.The government should pay attention to the development of rural finance,perfect the relevant financial laws and regulations,strengthen the supervision of rural finance,and prevent the occurrence of systemic crisis.Secondly,the government should pay attention to the guidance of rural financial development.Establish a long-term mechanism to promote the development of rural finance.Continue to increase support for rural finance,attract social capital into rural areas,expand the scale of rural financial markets,ease the contradiction between supply and demand of funds in rural areas.The government should encourage the development of new rural financial institutions.The development of new rural financial institutions has increased the channels for the supply of funds in rural areas and expanded the supply of funds.At the same time,it has strengthened the competition among financial institutions and promoted the improvement of efficiency.It has createdfavorable conditions for the healthy development of rural financial market,the development of rural economy and the increase of farmers' income.