The Western Region Of Rural Financial Deepening Government In Behavioral Research

In this paper, by using the theory of financial deepening, the author gives a systematic study of the question of financial deepening within the rural areas of western China and explores the role of government behavior within the process. This paper begins with reviewing relevant theories of government behavior in financial deepening, then, based on the theories, gives an empirical analysis of the degree of financial deepening within the rural areas of western China, and compares the result with the statistics of east and central China. By referencing the development of backward areas of foreign countries and advanced experience of the financial system of rural areas, the author points out the direct and indirect means of government behavior in financial deepening of the rural areas of west China and formulates an integrated theory.First, the paper reviewed the related theory of government action in financial deepening, such as the general theory of financial deepening, rural financial theory, general theory of government behavior and the theory of regional economic policies. On this basis, select the relevant indicators to make empirical analysis of the degree of financial deepening in rural areas. We think there are some gaps among the western region in total volume, structure and efficiency with the eastern and central regions. Fundamentally speaking, the regional difference is caused by the regional difference of the level of economic development. through measuring and ranking the rural financial maturity of nine provinces (cities, districts)of eastern, central and western regions ,the author finds that there are also some regional differences of the rural finance maturity. In developed areas, private finance has become an important force on promoting rural economic development and its impact on rural finance should not be neglected. Since sometimes market and government will not work properly, in rural financial deepening, the government should choose a reasonable position restrained by the economic and social conditions of the western region and maximize the effectiveness of the government to achieve the unity of fairness and efficiency.Therefore, China is not an optimal currency area. Regional inclination of financial system is the direct means and tool of government behavior during the process of financial deepening of rural areas of western region. To implement the policy unifying national equity and regional difference and construct the monetary and financial policy of regional difference will improve the financial ecological environment of rural financial deepening of western region and narrow the gap with eastern developed areas. At the same time, to solve the essential problem of rural finance, in addition to the reform of the financial system itself, the government should also take into account the external mechanism of the financial system. To solve the problem of rural finance of poverty-stricken areas in the western region, we need to proceed from the basic system of rural areas and reflect the difference between eastern and western areas and not treat them in the same way.