An Evaluation Of Rural Financial Development And Economical Growth Of Hubei Province

The core issue of economic development and social stability in our country is a problem of countryside, agriculture and peasants. Peasants' income growth is a important problem that concern with China's development.Peasants'income growth can't be separated from the development of rural economy,the development of rural economy need the strong support from rural financial necessarily.The paper describes the periods of Rural financial development experience based on modern financial development theory and the character of agriculture at first. Second, based on the phenomenon of Hubei rural financial development, the structure of financial development, for example, FIR, IR, Deposits-loans ratio,etc.,the paper draws a conclusion that the level of Hubei rural financial development is lower than the average of China's and Hubei province's.And then, this paper makes a practical study of Hubei rural financial development and economic growth. In the long term, there is a positive effect between Hubei rural financial and economic growth. The scale of rural financial development exists close and promoting growth effects on agricultural GDP. But, the rural investment in fixed assets takes an unconspicuous impact on rural economic growth and it exists hysteresis quality.Financial restrain is an obviously existence in Hubei rural finance. On the background of nationwide's rural finance reform, it's an opportunity to promote rural economy through setting up impeccable financial system, deepening rural credit cooperatives' reform, and expressing local financial active ability.