Effects of Rural Financial Development on Farmer Income Growth in the Yangtze River Delta

By examining the example of the Yangtze River Delta,this paper uses VEC model to determine effects of rural financial development on farmer income growth. The results show that rural financial development structure has significant positive effects on farmer income growth in the long term,but the scale and efficiency of rural financial development have negative influence. In the short term,the scale and efficiency of rural financial development have lagged positive effects on farmer income growth. Of the variables considered,rural financial development structure makes a great contribution to changes in farmer income growth and long-term sustainability,and the contribution of rural financial development scale is a litter more than that of rural financial development efficiency and rural capital input.