Empirical Study of Relationship between Rural Finance Development and Peasant Income of Sichuan Province

Abstract

Using to the relative data from 1989-2010 in Sichuan province, with ADF unit root test, cointegration test, error correction model and Granger causality test, we make an empirical study on the relationship of scale of rural finance development, structure of rural finance development, rural finance development efficiency and peasant income growth. The empirical results show that: there is positive correlation among peasant income and scale, structure of rural finance development, on the other hand, there is negative correlation between peasant income and rural finance development efficiency. The result of Granger causality test shows that there is no cause-and-effect among peasant income and the scale, structure, and efficiency of rural finance development.