Influence of rural financial development on the rural income increase: Based on the research of Jiangsu, Henan and Guangxi

Abstract

This paper used the data of the Jiangsu Province, Henan Province and Guangxi Province from 1985 to 2009, as the representations of eastern, central and western parts of China, to study the influence of the development of rural finance on the rural income increase through the C-D production function model. The results showed that the effects were differed: both the rural finance scale and efficiency were impeded the rural income increase in Jiangsu; in Henan, the rural finance efficiency had advantages to the income growth, while the rural finance scale was impediment to the rural income increase; contrary to the Henan Province, the rural finance scale in Guangxi promoted the increase of rural income, but the rural finance efficiency hindered the income increase.