A Research about the Influence of Rural Financial Development on Farmer's Income Growth in Shandong Province

Based on 1988-2007 statistics,the research focuses on the influence of rural financial development on farmers' income growth in Shandong province by using the cointegration analysis and gray relational analysis.It is indicated that there are close and long balanced relationship between the rural finance and the former's income growth.In other words,the enlargement of rural credit scale is beneficial to farmer's income growth.However,the financial institutions has low efficiency in transforming the rural deposit into rural credit,and don't play the full part in financial intermediation.According to the problems existing in the promotion of rural finance at farmer's income growth,the research has offered some detailed policies and suggestions about how to strengthen the finance support for farmers and increase farmer's income from the perspective of rural finance.