The Empirical Analysis Of Rural Financial Development And Agricultural Economic Growth Based On Gansu Province

Finance is the core of modern economy, on the study about relationship between financial development and economic growth is the one of hot topic in the academic field for long time. Western economist has done the relevant study in financial development and economic growth from different aspects and different levels, especially since the 80's, the use of empirical methods in the study on financial development and economic growth has mathematic foundation. Many studies indicate there is the relationship of reciprocal promotion or restriction between the financial development and economic growth. Our scholar also have done basic study in the financial development and economic growth, but the documents in the rural financial development and economic growth used the empirical approach, to confirm and analyze the impact of the rural financial development against economic growth in our country.This paper use the empirical approach, to analyze relationship between rural financial development and agricultural economic growth in Gansu province, and adopt the index of Odedokun's production function and VAR approach, to analyze impacts of the rural financial development against agricultural economic growth by establishing the model of VEC, empirical results show that except factor of bank-finance system's scale is negative effect to agricultural economic growth, other financial variables is positive effect to agricultural economic growth, and the result of Granger cause test indicate that in lag 5 farmer fixed-asset investments have the two-way Granger cause relationship, and the one-way Granger cause relationship against the bank-finance system, other variables is indistinct Granger cause relationship. Eventually suggestion in this paper is deepening the reform of rural financial system, improving investment in agricultural field and technical innovation.