China's Rural Financial Development And Rural Economic Growth Research

Since the reform and opening in economic, the national economy of China has taken great development. But the proportion of the rural economy in the national economy has been declining. The gap of residents income between urban and rural have been broaden, especially in the medium&upper-term of 90's, the farmer incomes occurred absolutely descending. The issue of "Agriculture, Rural, and farmer" have become an important problem puzzling the China economy. In the view of economic academic community, the approach of advance the rural economy is guiding country surplus labor to transformation. Secondly, yielding higher value added crops through adjusting the agrarian structure (Lin Yifu, 2003). Indeed, there may be some reasons engender the rural economy's growth slowly, one of it is the bottleneck of rural finance supply.At present, the rural finance meets all kinds of problems. The rural finance organization exist limitation, the state commercial banks withdraw their rural embranchment; the Agricultural Development Bank cut its policy service to sustain agriculture; the Post Savings be allowed take deposits and unable to crediting; the Rural Credit Cooperatives' assets is poor, leaning to non-agricultrue, and so on. All of the problems directly lead to the capitals are flowing from country to city, and the agriculture reproduction's fund has been shorted. It is estimated that the amount of capital is about 300 billion Yuan up to 11, 2002 (Xia Bin, 2003). Thus, in ord to developing rural economic, we must reform the rural finance system immediately.The textual research process is: on the basis of financial development and economic growth theory, set up rural economic growth model, educing an important view that the index of the rural financial depth is a significant variable which explaining the rural economic growth. Then analyse the status and the reasons in rural financial constraint, put forward the policy and advices to unchain the financial constraint, accelerate the evolution of rural economy.The main conclusion and innovation as fellows:(1)Consulting the Pagano model in the theory of endogenesis economic growth , into China rural economic sphere, select the proper index, build rural economic growth model, get through analysis of regression between China rural economic growth and rural financal development, enducing that the index of rural financal development is the important explanatory variable. At the same time, policy variable is one of the important factors, but the index of the interest rate take on the remarkable negative correlation with the rural economic growth, quite the opposite with the macroeconomics (either take on the direct correlation).It declare that financial constraint is one of the important factor that restrict the rural economic growth; secondly, government's policy is also the decision effect; thirdly, our country's market present division status. The rural markets according with the character of Keynes' "depression economy". Thus, the policy and measure in rural economic ought to difference with macroeconomic.(2)Analyzing the system factor that affect the rural economic, also educing that the rural financial constraint is one of the important factors that restrict the rural economic growth. The conclusion of theory and demonstration's analyse is my paper's gist.(3)Based on the rural microeconomic body, I have in-depth analyzed the demander of financial products including the farmer, township and village enterprises and rural grassroots' government organization. Take advantage of research datum of farmer, analyzing the rural financial constraint, is my paper's another innovation.(4)Based on the analyzing the supplier of financial products, including the Agricultural Bank, the Agricultural Development Bank, the Rural Credit Cooperatives, the Rural Cooperative Foundation, the rural insurance and so on, from the other visual angle, revealing our rural financial constraint.(5)According to the view of "rational man" pursuing profits maximum of his own, we can d...