Research On Rural Financial Impact On Economic Growth In Shandong Province

Finance is the core of modern economy and it decide the speed and efficiency of the economic growth, the financial development has a remarkable impetus function on economic growth. Rural finance is to mobilize, allocate and manage the movement of rural financial capital by credit and it's the core of rural economic growth and development. The research indicate there is a long-term stable relationship between the development level of rural finance and economic growth, the enhance of the development of rural finance has a impetus function on rural economic growth. However, if the level of rural financial development is not high, the efficiency of rural financial development is low and the system of rural financial system is unreasonable, the rural financial development can not effectively support the growth of the rural economy, it will hinder economic growth. Therefore,constructing a perfect rural financial system is very important to the development and reformation of rural economy.Shandong and Hebei provinces are the big provinces of rural economy, agriculture and rural economy take an important part on their national economy. There are different relationships between rural financial development and economic growth in Shandong and Hebei rural area because of the particularity of rural economies and the financial development. This paper selects Shandong province as research object and Hebei province as reference object and research the rural development level of economic and finance based on previous years data of the development of finance and economy. This paper has used the description method and real empirical method, firstly analysized the current situations and the existing problems of rural finance in Shandong and Hebei, then the paper made an empirical test with the samples of Shandong snd Hebei to test the function mechanisms. We discover that the rural financial development level in Shandong compared with rural economic growth lags behind obviously, it is the impotant factor of restricting the rural economic growth of Shandong province that the rural finance is developed inefficiently. Lastly, the paper propose that enlarge the rural finance scale, enhance the rural finance development efficiency, construct a diverse, multilevel and efficient rural finance system have very important significance to economic growth.