Study On The Influence Of Rural Financial Development On Farmers'Income In Weihai City

In the traditional dual economic structure,the rural economy develops slowly relative to the urban economy,and the farmers' income level is relatively low,which urgently needs the support of rural finance.However,the overall level of rural financial development in China is relatively low.Therefore,how to correctly analyze the impact of rural financial development on farmers' income,find out the key problems,and put forward targeted recommendations has strong practical significance.As a coastal city in Shandong Province,Weihai has a large rural population,the income level of farmers is not high,and the rural financial system is in the process of development and improvement.Therefore,in the era of rapid financial development,how to give full play to the positive role of rural finance and promote the continuous improvement of farmers' income level in Weihai City is as follows: Urgent Questions Needed to be Solved by Weihai Municipal Government.Based on this,this paper summarizes and collates the relevant research literature on rural finance and farmers' income at home and abroad.Based on the theory of rural credit subsidy,rural financial market,incomplete competition theory and other related theories of rural finance,dual economic structure theory,national income distribution theory,property rights theory and other related theories of farmers' income,this paper further bases on the theory of financial deepening.On the basis of endogenous growth theory,this paper puts forward the mechanism of rural finance affecting farmers' income,which paves the way for the following empirical analysis.This paper also analyses the current situation of rural finance and farmers' income in Weihai,and points out that rural finance and farmers' income in Weihai are on the rise.On this basis,this paper chooses the time series data of Weihai City from 2003 to 2017,builds the production function econometric model based on the endogenous growth theory,and constructs the index variables of rural financial development,such as rural financial development structure,development scale,development efficiency and rural residents' education level,taking the per capita consumption expenditure of rural residents in Weihai City as the explanatory variable.Then,unit root test,co-integration test and causality test are used to analyze the impact of rural financial development on farmers' income in Weihai.The results show that the structure of financial development,the scale of development,the efficiency of development and the level of education of rural residents have significant positive effects on rural residents' income.Finally,according to the analysis results of the article,the relevant policies are given in terms of increasing the supply of rural credit funds,expanding the scale of rural finance,further optimizing the rural financial development structure,further improving the efficiency of rural financial development,and increasing financial support for educational human capital.It is suggested that we hope to help Weihai to better develop rural finance,so as to better promote the increase of farmers' income,and further give relevant prospects for future research of this topic.