China's Rural Finance Institutions: Structure And Causality With Economic Growth

The development issue of financial institutions is always a focus which has attracted large attentions from academia and governments since 1970s. The reform of rural economic system has provided an extensive platform for the reform and development of rural financial institution system ever since China launched reform and opening policy. Moreover, the expanding rural financial institutions and the gradual financial deepening have become the main drive to accelerate the regional economic growth.Based on the analysis on the issue of China's rural financial institutions development with a more objective and rational view, this thesis tries to optimize the allocation of rural financial resources and speeding up the development of rural economy, and some conclusions have been drawn out as follows: (1) Nowadays the financial products supplied by rural financial institutions are almost homogenous in the horizontal services, and the excessive protection and intervention has resulted in the ineffective distribution and allocation of rural financial resources. (2) As a whole speaking, the development level disparity of rural financial institutions in China has featured with obvious imbalance, and the number of rural financial institutions is spatially distributed according to the population rather than the efficiency. Analysis on the regional gap demonstrates that the disparity among the southern, northern and western region in China is the main factor that resulted in the disparity of rural financial capital per capita. (3) There exists a long term co-integration relationship between the development of China's financial institutions and the growth of regional agricultural economy, as well as a single directing Granger relationship between them in terms of district level. (4) To realize the participating bodies' interest equilibrium in the process of financial institutions optimization, optimizing rural financial micro-body should be first emphasized with the supplement of related industrial institutions policies. In addition, the self-organization and heter-organization should be utilized to optimize rural financial institutions in China.