County Economic Development And Financial System Arrangement

County is the most basic economic unit in China, but also link the coordinated development of urban and rural areas. Currently, China is affected by the financial crisis abroad and Internal economic structural imbalances. So accelerating the development of county economy, particularly the Midwest economy, is not only related to the "countryside problems, peasants problems, agriculture problems", but also related to China sustained economic development and stability. However, the county economic development is faced with all kinds of "bottleneck", in which the most prominent phenomenon is financial repression. Therefore, improving the financial systems of the County and increasing the effective supply of finance has become the key of solving the "bottleneck" of the county’s economic development. Under the Guidance of Institutional Economics theory, theory of financial development, financial system structure theory and its research methods, this paper carefully analyzes the county financial situation and its existing problems, and reveals a variety of factors in the county economic development status. This paper stressed that the financial system arrangement plays an important role in promoting the county financial development. So we must seriously solve the problem of the current county finance system, and release the vitality of the County financial.This paper is composed by the nine chapters, as follows:Chapter one is "introduction". This chapter presented the background paper topics, research significance, and existing literature was reviewed to clarify the research paper ideas and methods, the study of the specific content and framework, and papers such possible innovations. Chapter two is "the basic profiles of county economic development". Through analyzing deeply the meaning, characteristics, role and status of the county economy, this paper come to a conclusion that the rural economy is an important component of the county economy, and that the county economy is the key of resolving "countryside problems, peasants problems, agriculture problems" Chapter three is "the county system of financial concepts Review". Based on characteristics of the county economy, initially established a complete framework of county financial theory, that should be a county financial theory based on the theory of financial development to the main regional financial theory and financial theory and rural small and medium enterprises as an important supplement to financial theory theoretical system. Chapter four is "China’empirical analysis of county financial development. Reference number of the current financial development and economic growth empirical research methods, use of financial-related rate (FIR), the relevant ratio of loans (LIR), deposit and loan poor (DLS) and the deposit-loan ratio (DLR) and other analysis tools, the County Financial Analysis supply problems, and county and city, between the eastern and western counties were analyzed financial supply situation, analyzes the county’s economic growth endogenous forces, financial development in economic growth in the county to play exactly what kind of role, and the central and western counties Causes of the phenomenon of financial repression. In these studies based on the analysis, obtained a conclusion that the county in the Midwest during the formation of financial repression, economic development is the decisive factor, but institutional factors are important reasons not to be ignored. Chapter five is "The financial regulatory arrangements and County financial development". From the system of economics and regional financial theory perspective, of a unified financial regulatory policy, such as interest rates, macro-control, barriers to entry in different regions such as the different effects produced, presented to a scientific, rational macro-control policy of gradual Relax on the county rate control system of differential County financial regulation and so on. Chapter six is "The financial organization system and the county financial development". Analysis of the current county development financial institutions, the problems, put forward a sound proposal county financial organization system. The main recommendations include:a clear positioning, handling services "Agriculture" and the county services, the relationship between the policy relationship between the financial and commercial finance, state-owned commercial banks and cooperative banks in the relationship; improve the function of focus is to improve the governance structure of rural credit cooperatives to play the role of the Agricultural Bank, the development of sound agricultural development banks and postal savings bank functions; poor selling, focusing on relaxation of barriers to entry of new financial institutions in rural areas, to develop non-bank financial institutions; norms guide the cooperation of private capital, and farmers development of financial institutions. Chapter seven is "The financial environment and the county financial development". Transaction costs from the legal point of view of economic and explore the county legal system is not sound social credit loss, transaction costs, etc., and give negative impact of financial development, also by improving the system of county property and financial legal system, strengthen the county credit environment, improve credit management, and promote the credit intermediary system and so on. Chapter eight is "financial support policies and County economic development". Comparison of China and Western countries in the rural areas, small and medium enterprises and the financial support behind the regional policy differences, learning from foreign experience and practices relating to the basis, propose solutions to the central and western county of financial restraint recommendations. Include:improving the County to attract capital back into the compensation mechanism, improve the county tax incentives of financial institutions, active formation of regional banks, led by the government to develop the credit guarantee institutions to increase efforts to support poverty alleviation and other discount loan.