Research On Rural Private Finance Of Underdeveloped Area

The private finance is a realistic problem as well as a theoretical problem in the world. It is often a source of financial innovation, and the initial states of financial institution change too. China's reforming and opening-up have been done for decades. No mater what the government' attitude is, that the private finance is active is a reality without doubt.This research method of this paper is as follows: unifying the historical principle and logical principle, the empirical research and normative research, the static analysis and dynamic analysis. With these methods, this paper studies the private finance of the underdeveloped rural area.First, this paper identifies the concept, feathers and characteristics of private finance, which is the basis of research. Secondly, this paper concludes former studies and does institutional analysis to make clear the causes of private finance's exist. Thirdly, this paper establishes a function and according to the data collected from rural area, it does metric analysis to explain the exist of private finance from the view of practice. Last, this paper puts forward relative policy suggestions to develop private finance in China.The conclusions this paper draws are that it is necessary and inevitable for the private finance to exist and the government should neither kill it nor leave it alone. Necessary management is urgently needed. Usury widely exists in the rural area of undeveloped areas. Most peasants in the inquired areas think usury to be positive and necessary; besides, they are inclined to borrow usury under a certain circumstance.The innovative point of this paper is that it draws a proper conclusion with metric method.