Rural Financial Development, Agricultural Fiscal Investment and Rural Residents’ Income

In this paper, we use the vector autoregressive model (VAR) to analyze the relationship among rural financial scale, financial efficiency, agricultural fiscal investment and rural residents' income through the analysis of relevant data from 1978 to 2015. The results show that the expansion of rural financial scale and the increase of agricultural fiscal investment have a significant positive effect on rural residents' income in the long run, but the improvement of rural financial efficiency has inhibited the rural residents' income. Therefore, it is proposed to improve the rural financial reform, change the urban-rural dual financial structure, and elevate the efficiency of fiscal investment.