Study On The Support Effect Of Agricultural Credit To Agricultural Increase In Xinjiang

During the period of eleventh five-year plan, with the modern agriculture and new countryside construction, the fund supply and demand contradiction in Xinjiang agriculture and the countryside is more prominent. The total quantity space of agricultural credit is big, which is a potential financing channel in the agricultural development. The support effect of agricultural credit to the agricultural increase in Xinjiang was measured in this paper, which showed the efficiency of agricultural credit. The problems existed in the agricultural credit were analyzed, and suggestions were further proposed.The relationship between agricultural credit and agriculture increase in Xinjiang was analyzed based on the method of co-integration, granger causality test and variance decomposition. The conclusion was that the support effect of agricultural credit to the Xinjiang agricultural increase in 1991-2005 was low.The reasons of the low support effect were the bad rural credit environment, the low efficiency of rural finance organization, lack of the compensation and drive mechanism as well as the low efficiency of Xinjiang agricultural production.The suggestions of enlarging the effect were speeding up the rural finance reform step, improving the rural credit environment, the enlarge of government support, and simultane- ously speeding up the agricultural industrialization advancement.