Relationship between Rural Financial Development and Income Increase of Farmers in Zhejiang Province

According to cointegrative analysis and causal relation examination,the paper makes an analysis of the index of rural financial development,rural fixed asset investment rate,the structure of rural labor force and the educational time of rural labor force in Zhejiang Province from 1982 to 2005. It also analyzes the influence of these factors on farmers’ income. It indicates that between the rural financial level and the income growth of farmers exist Grainger cause-effect examination and long-term stable balanced relations. At the same time,according to the gray relation it analyzes various factors influencing the farmers’ income. Finally,the policy proposal is put forward on how the rural finance promotes the farmer’s income.