An Empirical Research on the Relation between Rural Financial Development and Rural Resident's Income in China

On the background of the acceleration of China's economic reform and gradual opening up,the relationship between rural financial development and rural resident's income has received wide attention by academic and decision makers.But so far there is no uniform understanding,and exists two different conclusions.The paper,on the basis of the relevant data of economy of 1978-2007,utilizes Johansen co-integration test,the Granger method,impulse response and variance decomposition to inspect the relationship between them in China.The basic conclusion of it is:there is a long co-integration relation between them,and only exists a single causality relation.These conclusions and policies will have an important instructive to China's rural financial reform and development.