Research On The Influence Of Rural Financial Development In Sichuan Province On Farmers’ Income Level

The issue of "agriculture,rural areas and farmers" has always been a major issue in China’s economic and social development.The key to solve the core problem of "agriculture,rural areas and farmers" is to increase farmers’ income.To a great extent,the growth of farmers’ income depends on the development of rural finance.Sichuan is a major agricultural province in China,and also one of the provinces that implemented the reform of rural financial system earlier.After years of reform,Sichuan rural finance has become an important force to promote rural economic development and increase farmers’ income.Since the reform and opening up,Sichuan rural economic reform has made remarkable achievements,greatly improving the income of farmers.However,we also find that the financial development in Sichuan rural development hinders the overall operation of the financial system,and it is difficult to meet the development of rural economy only relying on a single financial product and service,so it has little impact on the improvement of farmers’ income.This is also an important reason for the slow growth of farmers’ income and the widening income gap between urban and rural residents in Sichuan in recent years.Therefore,the study of the financial factors affecting the growth of Sichuan farmers’ income will not only provide theoretical basis for the reform of Sichuan’s financial system,but also further enrich China’s rural financial theory.From the perspective of the structure of the whole article,it is mainly carried out according to the idea of basic theory-current situation analysis-Empirical Research-conclusion and suggestions,mainly including the following parts:1.Analysis of the current situation and problems of farmers’ income.By analyzing the per capita income of farmers in rural areas of Sichuan Province,including the income growth rate,the income and consumption gap between urban and rural residents,as well as the income structure and source of farmers,we can further find the problems in the development of rural farmers’ income.2.Analysis of the current situation and problems of rural financial development.This paper analyzes the composition and achievements of the rural financial system in Sichuan Province,and further analyzes the current problems in the financial development of rural areas in Sichuan Province.3.Empirical analysis of the development of rural financial system in Sichuan Province on the income level of farmers.The empirical analysis of this paper is mainly divided into two parts: one is to select the time series data of the whole rural areas of Sichuan Province,preprocess the original sequence according to the unit root test and co integration test,then analyze the causal relationship between the variables according to the Granger causality test,and finally conduct impulse response analysis and variance decomposition analysis to study the impact of rural financial development on Farmers’ income in Sichuan Province The second is to select the panel data of 10 prefecture level cities in Sichuan Province,analyze the relationship between the variables through the stability test and panel co integration test,and select the fixed effect model through the F test and Hausman test to carry out empirical analysis on rural financial development and rural income level in Sichuan Province.4.Conclusions and policy recommendations.According to the conclusion of the model,the corresponding policy suggestions are put forward.Based on the time series data analysis of the relationship between rural financial development and farmers’ income in Sichuan Province from 1988 to 2017,the following conclusions can be drawn:(1)Through the corresponding unit root test,it is found that the financial development scale,development efficiency,development structure,financial support for agriculture intensity and fixed asset investment level in rural areas of Sichuan Province are all single integrated in the first order.Then,through the co integration test,it is found that there is a long-term stable relationship between various variables,and it is found that the efficiency and development structure of rural financial development and financial support for agriculture are strong Degree plays a positive role in the growth of farmers’ income,while the scale of rural financial development and the level of rural fixed asset investment will inhibit the improvement of farmers’ income.(2)According to Granger causality test,only farmers’ income is one-way Granger cause of rural financial development scale,while other variables have no causality with the improvement of farmers’ income level.(3)According to impulse response analysis and variance decomposition,we can find that the impact of rural financial development scale on Farmers’ income has a negative effect,while the impact of rural financial development efficiency and development structure on Farmers’ income has a positive effect.In addition,according to the variance decomposition,we can know that the scale of rural financial development contributes the most to farmers’ income,followed by the efficiency of rural financial development,and the smallest is the structure of rural financial development.Based on the panel data analysis of rural financial development and farmers’ income level of 10 prefecture level cities in Sichuan Province from 2010 to 2017,the following conclusions can be drawn:(1)Based on the panel data of 10 prefecture level cities in Sichuan Province,it is found that the original series is a stable series,and there is a long-term co integration relationship between the variables.Then,according to the F test and Hausman test,the fixed effect model is selected.According to the regression analysis,the scale and efficiency of rural financial development are obtained Development structure has an impact on the growth of farmers’ income.(2)According to the empirical test,the scale and efficiency of rural financial development in 10 prefecture level cities in Sichuan Province have played a positive role in the growth of farmers’ income,while the structure of rural financial development in 10 prefecture level cities in Sichuan Province has inhibited the growth of farmers’ income.According to the conclusions of the study,the following suggestions are put forward:(1)to strengthen the reform of rural financial system and improve the efficiency of rural financial development;(2)to accelerate the cultivation and development of new rural cooperative finance;(3)to strengthen the cooperation of various financial institutions and improve the utilization rate of financial resources;(4)to innovate financial service products to meet the diverse needs of residents;(5)to strengthen the construction of rural credit system,To ensure the healthy development of the financial system.