The Research On The Rural Financial Development Of China

As a great agricultural country,the rural financial development in China experienced a very tortuous process,which can be divided into the following stages: after the founding of the People's Republic of China,a highly centralized planned economy brought about the highly centralized financial system.In order to promote the development of rural economy and demand of agricultural production,Agricultural Bank of China and rural credit cooperative organizations were established.Although they played an important role in rural construction and rural development at that time,the development of rural financial was still stuck in trouble because of the system constraints.In 1978,after the reform and opening up,the rural financial system constantly deepened reforms,and the rural financial system gradually established.In 1996,rural financial system entered a new stage for further development.Agricultural Bank of China outlets could be found throughout urban and rural areas,and shareholding system reforms were carried out.After 1990 s,the development of rural economy has actually been in a slow development stage,with the expanding gap of farmers' income and the increasing serious gap between urban and rural development,which affect not only healthy and sustained economic development in rural areas in the future of China,but also the stability of a country in a long period.Therefore,studies in the association between rural finance and rural economy,and how to develop and innovate the logic and mode of the country's rural development in the future is just around the corner.This paper is based on the current status of rural finance and the problems encountered in the development process,and the previous research achievements of China's rural finance and rural economic development,starting from the perspective of the integration of urban and rural areas,the great importance of rural financial development to the rural economic development,and the relationship between them,the paper discusses the future of China's rural financial development model and path.Through theoretical and empirical analysis,we study the effects of rural financial development on rural economic growth,and talk about the logic of rural financial innovation and development in China from the perspective of unification of town and country,including the Innovation model and logic of the rural financial development environment,and build a multilevel rural financial system theory and the framework,and put forward a new pattern of rural financial informatization and the characteristics and difficulties it is facing.According to the theoretical analysis and empirical results,we give some policies and suggestions to deepen the rural financial development.The contents and structure of the paper are as follows:Chapter 1,the introduction shows the background,objective and significance.This section introduces the necessity,the framework and methods,and the innovations of the research.Chapter 2 gives some basic concepts and theories,which are the basis and prerequisite of the following chapters.Furthermore,it introduces the development and features of rural finance of China.The development background and characteristics of the rural formal finance and informal finance in each historical period are analyzed emphatically.Finally,the main characteristics of the supply and demand of rural finance in China are presented.At last,it shows some advice by the international experience of rural financial development.Many developed countries have accumulated rich experiences,such as America,Germany,France and Japan,which have multilevel rural financial organization system and the frames about the financial law.And the highly developed rural finance is an important support for the development of agriculture in these countries.Some developing countries,such as Bangladesh,India,Indonesia and some Latin American countries,develop the rural micro finance and the informal finance organization by its own national conditions and characteristics of institutional system.These rich international experiences have important significance for the construction and improvement of rural financial Chinese.Chapter 3 is the effect of rural financial development on economic growth,which was studied by using VAR and VEC model.Through the selection of rural per capital GDP growth,rural financial related rate,loan-deposit ratio,rural deposit ratio and investment ratio to make the empirical analysis,the results show that there is a long-term stable relationship between the China rural financial development and rural economic growth.But rural financial related rate and Chinese rural per capital GDP growth has a negative relationship,which proved the problem of China's rural financial system is still the main block of rural economic development in our country.Therefore,in the process of Chinese rural finance and rural economic development,what we should focus on is that not only pay attention to the increases of rural financial related rate and let them play an important role in rural economy,but also to emphasize the credit structure of rural finance,rural financial capital operation efficiency and rural financial environment construction to ensure the healthy and sustainable development of rural finance.Chapter 4 analyzes the innovations and developments of rural finance based on the integration of town and country.We discuss the rural finance from the logic,environment and practice of innovations.With regard to the innovation logic,China should ensure the right of farmers to use the modern finance,and give full consideration to protect the interests of every stakeholder by the incentive compatible logic.Meanwhile,we should straighten relationship between the government and market,and unify the market distribution and government regulation.Besides that,we also hold the rule of law logic to develop the innovation of the rural finance.For the financial innovation environment,this paper studies the development from the perspective of macro environment,medium environment,and micro environment,and we can get that the innovation development is conform to the requirements of the times and the development of the industry.For the innovation practice,this paper summarizes the practice of rural financial innovations,especially in land mortgage loans,land benefit guarantee loans and direct subsidies funds guarantee loans,and shows the contents and logic of them.Chapter 5 studies how to choose the path of building China's multi-level rural financial system and the patterns of rural financial informatization.The construction of new countryside needs the support of capital,and to build a multi-level rural financial system is to serve the needs of rural economic development,which is also an important measure to solve the "Three Rural Issues".However,because of the system limitation of Chinese rural financial system,the reform and development in rural financial system cannot effectively serve the rural economy,which is necessary to construct a more reasonable rural financial system.Chapter 6 states that rural financial informatization is the weak link of financial information in China,so in order to establish a multi-level rural financial service system,we must improve liquidity efficiency firstly,and then strengthen the construction of rural financial institutions.In this chapter,we investigate the design and patterns of rural financial system,and propose the construction: "Policy-Commercial-Cooperation",which is the basic framework of a multi-level rural financial system,and provides a reference for the development of rural financial economy.Furthermore,we put forward the concrete methods of rural financial informatization,and show a new development model for the future of rural financial information.Chapter 7 shows the suggestions of the rural financial reform from the perspective of urban and rural integration.Through the qualitative and quantitative analysis of the previous chapters,we can know that if we want to accelerate the reform and development of rural finance,we should respect the fact of urban and rural integration,jump out of the trap of the urban and rural difference,and break the subjective assumption to reconstruct the modern financial service system.China also should follow the financial principle of people-oriented,and the principle of sustainable development,market orientation and coordinated development these four principles,based on the innovation of rural financial services products,optimize the urban and rural financial ecological environment,strengthen urban and rural financial policy support and supervision system.