| Farmers’ income is the core issue of the "three rural areas" in China,and only by continuously promoting farmers’ income will the rural economy be better developed.In order to increase farmers’ income,the "Central Government No.1" document has put forward relevant suggestions and measures every year.But at present,China’s rural areas still lack a sound financial services system,making the level of rural microfinance services can not adapt to the level of rural economic development,microfinance can not give full play to the "trickle-down effect",which to a certain extent inhibits the increase of farmers’ income.In 2022,Zhejiang Province proposed to improve the environment for rural financial development,improve the rural financial service system,narrow the gap between urban and rural incomes,and promote the high-quality development of rural microfinance,thus promoting the increase of farmers’ income and achieving the goal of "common wealth" is of great practical importance.In order to have a more accurate and complete grasp of the development of rural microfinance and the specific situation of farmers’ income in Zhejiang Province,11 municipalities in Zhejiang Province were selected as the main research subjects of this thesis.This thesis firstly elaborates the research background and significance of microcredit for farmers’ income increase,and then defines the relevant concepts of rural microcredit,and elaborates the relevant theoretical basis and the analysis of the mechanism of income increase.Based on the analysis of the current situation of microfinance development in Zhejiang Province,the evaluation of the development level of microfinance in Zhejiang Province was constructed,which was based on three different dimensions: "service breadth","service depth" and "development quality" of rural financial institutions."The evaluation of the development level of microfinance in Zhejiang Province is based on the analysis of the current situation of microfinance development in Zhejiang Province.Again,the entropy value method was used to evaluate the microfinance development level of each city in Zhejiang Province.Finally,based on the development evaluation results,a multiple linear regression model was constructed using a fixed-effects model,and the main conclusions of the study are as follows:(1)From the evaluation index of microfinance in Zhejiang Province,the overall microfinance development level in Zhejiang Province shows an upward trend of steady growth and a significant increase.Analyzing the development level of each region,it can be concluded that the level of microfinance development in Hangzhou has the fastest growth rate,rising from 0.1380 in 2007 to 0.4490 in 2021,up by 0.311 percentage points,and the slowest rise is in Lishui,which has only risen by 0.0842 in 15 years.(2)From the results of multiple linear regression,the development of microfinance in Zhejiang Province can promote farmers’ income increase.In terms of farmers’ income structure,microcredit has the most significant impact on the increase of farmers’ business income.And the development level of regional economy,the level of agricultural R&D investment and regional financial support to agriculture,and the degree of openness to the outside world have positive effects on promoting the development of microcredit and promoting farmers’ income increase.(3)From the regional development homogeneity analysis of Zhejiang Province,there are disparities in the level of microcredit development among the regions in Zhejiang Province.In northeastern Zhejiang Province,where economic development is faster,the effect of microcredit development level on farmers’ income increase is not significant;in southwestern Zhejiang Province,the development of microcredit level has a significant effect on farmers’ income increase due to the geographical environment and economic development limitations.Based on the results of the empirical analysis,combined with the current situation of microcredit development in Zhejiang Province,this thesis put forward relevant policy recommendations in four aspects: government,farmers,financial institutions and regional differences,respectively,to improve the institutional mechanism of rural microcredit development and promote the increase of farmers’ income.This thesis argue that improving the policy environment of rural credit,strengthening the education system of rural credit,ensuring the balance of supply and demand of rural credit and narrowing regional credit differences can effectively promote the role of rural microcredit in helping farmers’ income increase in Zhejiang Province. |
