Rural Finance Development: Evidence From Jilin Province And Developed Region In China

Rural economic development can not be separated from the support of funds and needs for the rural financial flow of the meridians. However, the financial status of poor rural areas of Jilin Province is very worrying because of a low level of financial services in rural areas,losing a large amount of capital in rural areas so that it has not played a good support for the new force in the role of agriculture economic development. At present, the literature of the domestic rural finance is plenty, but study of rural finance in Jilin Province are few. Jilin Province is an important area of planting the source of food ,but the agricultural economy is developing .So the analysis of the inadequacy of agricultural finance in Jilin Province , exploring the development of agricultural finance and analyzing the relative experience of the developed areas is necessary .Comparison of the finance between Jilin Province and the developed areas is to promote further study of rural financial development.The field of rural finance theory has three different schools of theory: the theory of agricultural credit subsidies, the rural financial market theory and the theory of imperfect competition market. These three theories are the form of expression and policies of the "financial repression" , "financial deepening" and "financial restraint on the field of rural finance".Based on the above theories , this paper make a comparison of the deposit growth in the rural areas , the rural financial development in the scale of the efficiency of rural financial development , the development of formal financial institutions and non-formal finance the development of rural financial between Jilin Province, and Jiangsu-Zhejiang regions.In the area of deposit growth in agriculture , we need study the degree of financial development or the degree of financial deepening which depend on the degree of economic and currency. Research on the development of modern financial theory of a core problem and needs the intermediary role of financial institutions, as much as possible mobilizing the savings deposits, and allocating of these resources rationally. This section compares the three provinces of agricultural deposits and found that the total amount of deposits in Jilin Province to agriculture is far below the two regions in Jiangsu and Zhejiang, while a higher rate of development is not stable.In the area of the scale of development in the agricultural financial , we need study the scale of financial development which refers to the size of the total amount of financial assets which can accommodated in a country or region under certain conditions.This section selected the degree of emphasis on monetary and the financial-related rate to measure the size of financial development.It is obviously that the level of economic monetization in the rural areas is gradually deepening. At the same time, by comparing the Jilin, Jiangsu and Zhejiang provinces,we found that the degree of monetization of the rural economy in the inter-regional differences, which are two indicators of the highest in Zhejiang Province which indicated that the degree of monetary of zhengjiang is highest and the one of jilin is lowest. The ratio of financial-related is to measure the structures and the level of development financial in one country . It can been seen that that the rates of finance is highest in Zhejiang Province, followed by Jiangsu ,and Jilin is lowest which is at the lowest stage.In the area of the efficiency of rural financial development , we need study the rural financial capital allocation efficiency . The financial institutions in Jilin Province has weak the organizing and mobilizing the remaining capacity of the economy,has little the source of capital . There is a large gap between Jilin Province and Zhejiang Province. Jilin Province has the low capability of allocation of funds inefficient,lack of funds and the Government has the support of agricultural loans more.In the area of the efficiency of the regular financial, we found that the number of agricultural financial institutions is relatively few ,the density of smaller financial institutions is relatively low because the major state-owned banks in the region following revocated of county business ,leaving the the farmers of rural credit cooperatives alone. While the number of very large financial institutions in developed areas, the financial institutions is very density.In the area of the efficiency of the irregular financial, we found that the irregular finance in Zhengjiang Province and Jiangsu Province has a long history and is very developed . While in Jilin Province, irregular financial development is due to the relatively backward of rural areas.Based on above studies ,this article make a regression analysis of the level of economic development in rural areas and rural financial development . We found that the level of economic development in rural areas and rural financial development is relevance.Finally, a comparative analysis of the basis of the above give us the inspiration of the rural finance development in Jilin Province .That is to develop the rural economy vigorously , to improve the income of the farmers, to promote the development of township enterprises, thereby to stimulate the demand for capital in rural areas ,to deep reform of rural financial institutions.