Research On The Impact Of Rural Financial Development In Shandong Province On Farmers' Income Growth

Rural economy is an important part of China's economic development.The economic development of rural areas and the growth of farmers' income cannot be separated from the development of rural finance.Agriculture is the foundation of China's national economy,and the development of agriculture is related to people's livelihood.In 2008,the third plenary session of the 17th CPC central committee clearly proposed that "rural finance is the core of modern rural economic construction".It can be seen that China attaches great importance to rural economic development and supports rural financial policies.The ultimate goal of various rural financial policies is to promote the growth of farmers' income level by various means.Since the reform and opening up,the level of economic development in Shandong province has increased rapidly,and the rural economic development in Shandong province has also improved significantly.By the end of 2018,the added value of rural economy in Shandong province is 495.05 billion yuan,up 2.6%year-on-year.Meanwhile,the amount of rural financial cooperation and mutual assistance in November 2018 is 209.092 million yuan,which plays a certain role in increasing farmers' income.Rural finance,as an important source of funds for agricultural economic development,is an important factor to promote rural economic development and improve farmers' income level.Therefore,to maintain the continuous development of farmer's economy and the continuous growth of farmer's income,it is necessary to maintain the stability of rural finance.It is of great theoretical value and practical significance to study the impact of rural financial development on farmers'income growth in Shandong province.Firstly,this paper analyzes the current situation of rural finance and farmers'income in Shandong province,and finds that the development of rural finance in Shandong province has experienced the period of rural financial reconstruction,the formation of rural financial system,the continuous revision of rural finance and the continuous reform of rural finance.Through the analysis of the composition of rural financial system and the current situation of rural financial development,the paper summarizes the main problems existing in rural finance in Shandong province,such as the imbalance of rural financial products,the prominent phenomenon of financial repression,and the difficulty of farmers' loans.Through the analysis of the current situation of farmers' income,it is found that there is a big gap in the income level of farmers in different regions of Shandong province,such as Qingdao,Yantai and Weihai,which have a higher income level,while Heze and Zaozhuang have a lower income level.Further,using empirical analysis method,using the related statistical data from 1995 to 2017,the Shandong province rural financial analysis of the influence of the income of farmers,rural savings rate,the rural financial development scale,the rural financial development,rural financial structure as the independent variable indexes such as efficiency,farmers' income as the dependent variable,build the econometric model,and the model of unit root test,cointegration test,Granger causality test,the study found that the Shandong province farmers savings rate had no significant impact on the farmers',income,The rural finance development efficiency,the rural finance development scale and the rural finance structure and so on,that have the remarkable influence to the farmer income.Furthermore,this paper adds the control variable-average education level of farmers in the model process,and the empirical results show that the average education level of farmers has a significant impact on farmers' income.Finally based on the empirical analysis,from the efficiency of financial development,the structure of financial development,financial development scale and financial development environment of the rural financial development in Shandong province to provide targeted suggestions for Shandong province rural economic development,the adjustment of economic structure and growth of farmers'income level to provide intellectual support,in Shandong province for the reform of the rural financial institutions,rural financial policies and regulations of the reference value.