The Research On The Development Of Chinese Rural Finance From The Perspective Of Financial Function

Finance is the core of modern economics, which is a necessary condition to socialism reconstruction for new countryside. However, currently rural finance system has not been able to exert its functions of supporting the rural economy development. On the one hand, the financial demand and supply of the rural entities are insufficient, on the other hand, extremely scarce financial resources originating from the countryside actually continuously transform to the city as non- agricultural resources. Therefore, during the period of our socialism new rural reconstruction, it is very significant in theory and practice for us to study the relationship, the mutual mechanism and the transmission among rural economy growth, financial function exertion, financial structure optimization and financial environments melioration.This dissertation constructs the covert and overt function of rural finance as the main clue, makes analysis and explanation of the efficiency of rural finance during China's different developing stages, which provides some suggestions for the development of rural finance in China and a logical clues for micro and macro analysis. Financial function ideas pass through the whole dissertation gradually and construct an organic whole by analyzing the aspects of rural financial development.The dissertation first discusses the functions and structure of rural financial system under the angle of system science, makes the definition of rural finance development, then puts up the views: rural finance functions promotes the unceasing optimization of the rural finance structure during the adaptation to the environment which unceasingly changes, unifies with the improvement of the environment by the people, enables the rural finance function fully to exert. This constitutes the content of rural finance development in China. The harmonious development between covert and overt structure of rural finance is the important condition that the rural finance function fully to exert.The following chapter discusses the politics and economic environments of rural finance development in China as the beginning of rural finance development research. Due to various state of rural finance function in areas with different economic developing stages, the dissertation constructs the system of fractal evaluation model and standard for its analysis, then divides China's rural area into developed, comparatively- developed and under-developed types and makes an analysis of the relationship between rural finance development and rural economic growth in terms offractal evaluation model. The result indicates the degree of rural financial factors'effect on rural economic growth is different in the three types of areas. However, there are also some common rules. The first is the increase of rural loan can promote the farmer income growth. Yet the efficiency of financial institutions in developed countryside makes more effective on the income growth; the second is that the farmer is more sensitive to the nominal interest rate comparing with the real interest rate. Moreover, the farmers in undeveloped areas are more sensitive somewhat to the interest rate; the third is the efficiency of rural fixed asset investment is no significance to average income of the farmers because of their little investment.The further researches inspect the supply-and-demand actuality of financial functions in China's rural areas, and find that the fractal dimensions have an obvious correspondence to the relations between the degree of rural finance function demand and local economy level of development and between rural finance development and the rural economy growth. This indicates that the rural finance function certainly is not static. It changes with different stages and different levels of rural economy development, in particular for the overt function of rural finance.Rural finance often has its own law of development and the development way, so it's far from enough only to know the present situation of rural finance. What the author manages to do is finding out the developing tendency of rural finance. By positive analysis to the joint effect of covert and overt function of rural finance in four phases of industrialization since China's foundation, the dissertation concludes that the rural finance generally functioned well in agriculture-making-up-industry stage but not so well in agriculture-equally-important-as-industry and industry? making -up-agriculture stages. The rural finance fund not only does not have positively to support the rural economy development, on the contrary actually flows to the city, and makes dual economic structure further to expand. The rural economy development is blocked.Of course, it's by far insufficient for rural finance reform only carrying on from the superficial level. The rural finance reform should pass through the examination in practice. It's not scientific to simply deny the past reform of rural finance without research or inspection.With a view to applying the successful experience of western countries into China's rural areas, the following inspects some characteristics of rural finance in some countries and advises functional target and developing rule of rural finance on the basis of China's actuality.Upon the above, the dissertation puts up the suggestion of structure optimization and environmental construction of China's rural finance, arguing that China should choose bank-leading model, advance mini-and-mid sized rural finance institution energetically, and develop rural finance market moderately. In order to exert rural finance function, for the outer environmental reconstruction of rural finance, advice is given on the fields of law, system, credit, agency service, proposing how to set up social responsibility standard, which is considered to be necessary for exerting covert function of rural finance at present.