Comparative Institutional Studies Of Chinese Rural Financial Organization

During Thirty years of reform and opening up, China’s rural financial organizations have been experienced an institutional reform process of “top-down and the stock and incremental reform succession”, and has basically built up a rural financial organization system with policy banks, commercial banks and other large and small financial institutions coexist at present, Rural financial reform has achieved initial success. But many questions remain, rural finance has not yet been solved. In order to further crack the rural financial problems, this paper attempts to compare the difference of typical rural financial organization from the perspective of comparative institutional analysis with a standard of growth attribute, transaction attribute and social attribute. We try to find the relative advantages of different types of rural financial organizations in serving rural areas for doing better.Rural financial organization is essentially a service enterprise to maximize the cooperation surplus, and resources, knowledge and ability is the basis of this group; it’s also a special kind of enterprise, In the process of the transformation from traditional agricultural society to modern industrial society, the rural areas need a lot of capital for smooth transition, the rural financial organizations in which bear an inescapable responsibility. Therefore, the comparative institutional analysis framework of rural financial organizations should take into account three attributes: growth attribute, transaction attribute and social attribute. Then, the paper derived future direction of the evolution of rural financial organizations from the perspective of the elements of the joint property. We deem that a company always faced game playing between physical and human capital in the process of growing the game process, and the final result of the game may be physical capital and human capital together promote business growth, human capital will eventually participate in sharing the remaining of rural cooperative financial organizations. By tracing the evaluation history and reform process of the development of rural financial organizations since 1953, we found that the reform of rural financial organizations never deviate out of these three attributes: from 1953 to 1978, the reform focused on social attribute and established Rural Credit Association and Rural Cooperative Fund Associations with cooperative nature; from 1979-2002, reform priority change to growth attribute, many commercial banks as result of withdraw from rural areas as a result of commercialize reform; after 2003, the reform pay attention to growth attribute and part of social attribute, but transaction attribute was attached until recently.Based on comparative institutional analysis framework and large-scale rural finance research data and other panel data, this paper compared the attributes of rural financial organizations with three different property nature(single element, capital combination and capital and labor union) by using binary sort, quantitative analysis of discrete choice models and panel data analysis method integrately. The results showed that:(1) single element has a good transaction attribute, but the growth and social attributes is just so so, it should improve its growth capacity for serve the “three rural” better;(2) capital combination has good growth capacity, but failed to take into account the social attribute, and the transaction cost is relatively higher;(3) labor union have good transaction and social attributes because of endogenous production and management, but it faced with the contradiction between producers in cooperation, and thus the growth capacity need apprehended;(4) three forms of ownership of rural financial organizations have different comparative advantage, capital and labor union seems work better. These three attributes are dynamic within different forms of rural finance organizations, and the external institutional environment of the rural financial organizations has an important influence on it.In addition, the article also described typical development model of rural financial organizations, such as the France, Thailand, New Zealand, Bangladesh and Span, and pointed out these rural financial organization system and institutional arrangements’ reference significance and enlightenment to the development of rural financial significance in China. Finally, we propose to implement different forms of agriculture and rural financial institutions trading pattern matching, innovating rural financial organization’s internal governance, promoting the improvement of the external parties linked institutional environment, doing everything possible to develop the rural economy, strengthen multilateral cooperation and regulatory insurance and securities regulators to implement differentiated several generous face of rural financial organizations to optimize system proposed appropriate policy recommendations, and noting the reform orientation of corporate finance.