The Mechanism Research of Rural Finance to Farmers' Income Growth

This paper studies the mechanism of rural finance development to farmers' income growth in China over the period of 1986-2007.The result shows that rural physical capital investment,rural human capital,and rural labors' transfer have remarkable relevance with farmers' income.Rural financial scale,rural financial structure,rural physical capital investment,rural human capital,and rural labors' transfer are also being related.But rural financial efficiency and rural physical capital investment,rural human capital,and rural labors' transfer actually have the negative relations.We believe that the low efficiency of rural finance is the primary factor which hinders the farmers' income growth.