Relationship Of Rural Financial Development And Rural Economic Growth In China

As a large nation of agricultural, agricultural and the rural economy development is very important to our country's economy. Since long ago, the agriculture has made the tremendous contribution for the national economy development. Since entering the new stage of development of agriculture and rural economy at the end of 20 century, the strategic adjustment of agriculture and the rural economy structure has become the central task of agricultural and the rural economy. The rural economy development needs massive fund accumulation and investment which cannot live without support from finance.This thesis utilizes the development economic theory, the financial development theory, unifies the development course of our country's rural finance and economy and analyzes the scale, the structure and the efficiency of our country's rural finance development. The thesis points out that the monetization degree of our country's rural economy is deepening gradually, but the financial structure still has all sorts of problems. What's more, the rural finance system mainly undertook the function of fund mobilization but not fund disposition, and the efficiency is low. This is precisely the reason why the rural finance development lags behind. Then by establishing three variable VAR model, the thesis analyzes the correlation ship between rural finance development and the rural economy growth and discover that there exists long-term stable positive correlation ship and the rural financial development has profound influence to the rural economy growth. Our country's rural economy growth prefer to depend on endogenous financing or non-regular financial support. In this foundation, the thesis analyzes the problem about our country's rural finance support economy development, and propose four policy suggestions as followed: relax the market access limit to cultivate the rural finance competitive market; establish withdrawal mechanism to strengthen the market restraint to rural finance organization; define the property right of rural finance organization, consummates internal governing structure as well as optimizes the external environment of rural finance development.