Study On The Relation Between The Rural Finance And Rural Economic Growth In Inner Mongolia

As a big agricultural country, agriculture and rural economic development situation are critical to China's economy. With the development of China's agricultural economy, newer and higher requirements in rural finance and credit or financial services are demanded. But now most social funds flow to the non-agricultural sector that is of high relative efficiency, and the massive outflow of funds in rural areas restrict agriculture and rural economic development severely . Research shows that it is more difficult for farmers and rural enterprises to obtain loans since the mid-nineties, the reasons to explain this phenomenon lie in the withdrawal of grass-roots organizations of the state-owned commercial banks and operating efficiency problems of rural credit cooperatives in rural area and other various reasons. Lack of appropriate and effective financial institutions to provide financial services in rural areas has seriously hampered the development of the rural economy, also contributed to the slow increase of farmers'income. On the other hand, due to uneven economic development in rural China, and the development of financial system are quite different, so the study of regional development of rural finance has some theoretical significance. New China has founded for 60 years, Inner Mongolia Autonomous Region has obtained sustainable development of agriculture and flourishment of rural economy. In recent years, although the rural financial services is undergoing positive changes, there are still outlets in rural areas, low coverage of banking institutions, shortage of financial supply, inadequate competition, and so on, so that, there are still gaps in financial services in some remote areas, and this seriously restrict the development of the rural economy. Therefore, to study the role of rural finance to rural economic growth has a very important practical significance.This paper consists of six parts. The first part sets out the background and research purposes of the paper, meanwhile, this paper describes the research methods, then the author undertook a review of the literature and evaluated the overall research results and the structure of this arrangement is described.The second part is an overview of the basic theory, this part analyzed the relation between of the development of rural financial and rural economic theoretically, andfixed Indicators to measure the growth of rural finance, and layed the theoretical foundation for the analysis of support of the rural for economic growth. The third part analyzed the rural financial system in Inner Mongolia. Firstly this part reviewed the history of the formation and development of rural financial system, then analyzed the status of the rural financial system of China and Inner Mongolia descriptively, and then find out the problems of rural finance in Inner Mongolia. The fourth part conducted a regression analysis between the rural financial development and rural economic growth in Inner Mongolia,. The fifth part proposed suggestions about improving the rural financial's contribution in promoting rural economic growth of Inner Mongolia: Inner Mongolia should made further innovation in rural financial system, and continuously improve the rural financial system to promote rural development and optimization of private finance and a series of effective measures to further enhance the rural financial contribution to rural economic growth. Part VI is closing. This part summarized the main conclusions of this paper and deficiencies and problems need further study.