The Research On The Influencing Factors And Countermeasures Of China's Rural Financial Development

Finance is the core of modern economy. Finance slowly becomes the first motive force of regional economic development with the deepening of modern industrial division of labor. To realize the coordinated development of regional economy, the key is to solve the problem of the rational allocation of resources, and funds itself is an indispensable factor of production, is also an important medium of resource flowing. How to make the support function on regional economic development of the finance more effective becomes a hot issue that the governments at all levels and academia discuss. From the experience of regional financial development of domestic and international areas, the regional finance is regarded as the core force of promoting regional economic development, its structure's upgrading and optimization would be the wings of the soaring of the regional economy.For a long time, China's rural economy in the development process has been in a relatively weak position. Financial development in rural areas faced with a series of problems, such as the prominent credit risk, the lack of competition mechanism, and the imperfect governance structure, etc. China's reform of rural economic system has provided an extensive platform for the development of rural financial institution system ever since China launched reform and opening policy, the gradual financial deepening has become the main drive to accelerate the regional economic growth.This thesis is based on relevant theories of regional finance, analyses the current situations of China's rural economy and finance. Based on the theory of regional financial development to promote regional economic growth, analyses China's rural financial development from the intermediate perspective, find out five main factors that enormous influence on it. Then, make a detailed feasibility studies on the effects of these factors. On this basis, this thesis introduces the Japanese financial system in rural areas, summed up the experience of Japan's financial policy, and hopes to provide some useful reference of China's financial policy in the promotion of rural financial development. Finally, base on the reference of Japan's successful experience and the former demonstration results of those five main factors, this thesis presents a number of concrete proposals about China's rural financial policy.This thesis includes 7 parts.Part 1. Introduction. This part expounds the background of selected topic, significance and objective of study, explains why choose the Japanese pattern to learn.Part 2. The review of theoretical researches on regional financial development. Through the review of the relevant literature, it describes the development process and the current situations of regional financial development theory. This part starts with the concept of regional finance, introduces the theory of regional financial development and the research achievements of rural financial development at home and abroad, prepares for the next step to lead up to the theoretical basis of rural financial development.Part 3. The theoretical basis and evaluation of rural financial development. This part introduces the theory of financial depression, financial deepening and financial constraint, which are emphasized on market-led at first, then introduces agricultural credit subsidies theory, rural financial market theory and incomplete competitive market theory, which are emphasized on government-led, and relates the origin and content of each theory. The last three theories can be considered as the practice results of the first three theories, and they are also the theoretical basis of this thesis. This part makes a simple evaluation of the practical application of these theories, especially the application in China of the last three theories.Part 4. The analysis of influencing factors of China's rural financial development. This part analyzes the five main factors that influence on China's financial development in the rural areas. These factors are dual economy structure between cities and rural areas, government acts, informal finance, unified monetary and financial policies and rural financial risk. This part analyzes the effects of the five factors by using quantitative, qualitative analysis method or establish regression model, to find out the problems of China's rural financial development, so to make recommendations accordingly.Part 5. Japan's rural financial system and its characteristics. Japan's financial development in rural areas is a very successful case in Asian countries, the fundamental reason is Japan's complete rural financial system. This part introduces the financial organization system and financial risk prevention system of Japan's rural areas, these systems have strong practicality and reference value for China.Part 6. Recommendations for China's rural financial development. In responding to the five influencing factors in part 4, after referring to Japan's successful experience of financial establishment in the rural areas and China's current conditions, this part puts forward several recommendations for establishing China's rural financial organization system. They are a multi-pronged approach to improve the urban-rural dual economic structure, guide the rural informal finance to a normal growth, give full play to the role of government's supervision and support, formulate financial policies and relevant laws that suitable for the rural areas and establish a rural financial risk prevention and management system.Part 7. Conclusion. This part draws the main conclusions of this thesis on the basis of summing up the former text.