Research on the Relationship of Rural Financial Development Efficiency and Income Growth of Farmers

DOI

10.2991/icsste-15.2015.208How to use a DOI?

Keywords

Rural finance development; Income growth of farmer; Vector error correction model; Granger causality test

Abstract

Byusing vector error correction model (VECM)with control variables and Granger causality test method, correlation and causationof rural financial development and income growth among farmers are re-examined. The results show that in the long term, the scale, structure and efficiency of rural finance development exists co-integration with farmers’ income and the rural investment. In the short term, the scale of development and increase of farmers’ income rural finance growth has bidirectional Granger causality, while rural financial development structure and efficiency are not the Granger causes to farmers’ income growth. Therefore, expanding the scale of rural financial development in favor of increasing farmers’ income and promoting rural economic development are important. In addition, income growth of farmers and rural economic development can also promote the development of rural finance to some extent. Currently relatively low efficiency of China’s rural credit allocation increases town business loans which is helpful to income growth of farmers.

Copyright

© 2015, the Authors. Published by Atlantis Press.

Open Access

This is an open access article distributed under the CC BY-NC license (http://creativecommons.org/licenses/by-nc/4.0/).

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TY  - CONF
AU  - Wang Qianfei
AU  - Li He
PY  - 2015/04
DA  - 2015/04
TI  - Research on the Relationship of Rural Financial Development Efficiency and Income Growth of Farmers
BT  - Proceedings of the 2015 International Conference on Social Science and Technology Education
PB  - Atlantis Press
SP  - 804
EP  - 807
SN  - 2352-5398
UR  - https://doi.org/10.2991/icsste-15.2015.208
DO  - 10.2991/icsste-15.2015.208
ID  - Qianfei2015/04
ER  -