On Studies Of Financial Support Of China Agricultural Development In Transition

In the situation of modern market economy, finance has become the center of economy, determining the speed and efficiency of the development of economy. When the function of financial factors is restrained, the economic growth will inevitably suffer from the restraint. Agricultural finance serves as the core of the gain and development of agricultural economy and the essential condition for promoting agricultural development and output increase. Agricultural financial support functions as the factor of realizing the mutual promotion between agricultural finance and agricultural industry, and the conductive mechanism. The agricultural development in transition relies on the impetus of a variety of inductive forces within agriculture and the stimulation of some other supportive forces outside agriculture as well. In the light of this, it is necessary to establish and amplify a supporting system of agriculture finance and make great effort to facilitate its formation of the compatibility of system, mechanism and stimulus respectively.The agricultural development in transition under the condition of market economy demands relatively high level of capital investment in both quantity and quality. Thereby, the market collocation of financial capital is crucial to guarantee its scientific use and rational circulation. Agricultural investment is to be implemented by different main bodies, which not only demands a large amount of capital but also varies in financing forms. The market collocation of financial capital will help to bring its function of circulation and regulation into full play, facilitate the implementation and maintenance of balanced development between agriculture and other industries, and optimize the proportionate relationship, thus forming rational and efficient collocation of agricultural economic resources and advancing the upgrade of agricultural comprehensive quality and industrial competitive capacity.In this paper, the internal logic and actual basis of financial support in the process of China agricultural development in transition are discussed, with the basic theories of Marxist economic theory as a guide and the rational factors in the theories of western development economy and financial economy as reference. By means of the combination of logical deduction and inductive reasoning, qualitative and quantitative analysis, macro- and microanalysis, as well as institutional analysis method, the two aspects are dissertated from three angles, that is, financial basis, interaction between production and finance, and agricultural finance. Then the principles, mechanism and choice of objects concerned with constructing agricultural financial support system are put forward, focusing on the discussion of the operational theory and support effect of three different kinds of agricultural financial support mechanism. Moreover, theinstitutional supply and effect of China financial support are discussed, centered on the financial support effect. Finally, it is pointed out that the vulnerability of China agricultural financial support determines that absolute market mechanism is not completely adaptable in the field of agriculture. That is because agricultural finance bears not only economic function but also distinct social function and orientation. To give full play to agricultural financial support, it is should be intensified from the following three aspects, namely, optimizing agricultural financial system and structure, improving the administration mechanism of agricultural finance, and formulating and coordinating agricultural financial policy.