Relationship Between Rural Financial Development and Income Increase of Farmers in Anhui Province

Based on an institutional and structural study of China’s financial development and farmers’ income growth,an empirical study will be made on the correlation between the rural financial development and farmers’ income growth in Anhui Province over the period 1991-2008.The study indicates that Anhui’s correlatoin rate of financial development has definitely negative effects on farmers’ income growth while the efficiency of financial development has positive effects.The results also show that the RFIR and the farmer income growth are Grange related to each other,yet the efficiency of rural financial development is not the Grange cause for the farmer income growth.Some policy suggestions are given on the promotion of the farmer income growth through Anhui Province’s rural financial development.