Empirical analysis on the relationship between rural cooperative financial development and farmers' income growth

In order to put forward policy suggestions for the development of rural cooperative finance, this paper analyzed the relationship between rural cooperative financial development and farmers' income growth using cointegration analysis and Granger causality test methods based on the data in 2001-2011. The results showed that it was negative correlation between rural cooperative financial development scale and farmers' income growth, and farmers' income growth was the reason of rural cooperative financial development scale, but the rural cooperative financial development could not made farmers' income increased. So we concluded that the key was the capital reflow reasonable mechanism, rural cooperative financial development could improve farmers' income growth.