Research On The Outflow Of Rural Fund In China

Presently,at China's vast rural areas,on one hand,as a result of the considerable gap of fund supply,the farmer's demand cannot be satisfied; on the other hand, the situation about outflow of fund is very serious,which not only hampers economy development,but also worsens the financing situation at rural areas,resulting in the prevalence of loan sharks. Therefore, discussing the status,causes, consequence and effective measures of the fund outflow are of great significance to promote the healthy development of rural economy and coordination between urban and rural. This is the purpose of this paper.After reviewing the status of fund outflow in rural area,we find that there are several ways for outflow,and the uppermost way is financial channel,including Rural Credit Cooperatives, Postal Savings Banks and state-owned commercial banks.The analysis of causes in outflow of rural fund yet declares outflow of rural fund is mainly contribute to the market economy law,self's weak quality in agriculture and country tendentiousness policy in industry.To be further,the outflow of rural fund may firstly harms the sustainable development of rural economy; secondly,it restrains the process of monetary,leads to the consume deficiency and surplus labor increasing day by day; thirdly,it makes rural areas financing circumstances become especially austere,and leads to the prevalence of loan sharks ; in addition,it worsens the relation between the banks and enterprises,enlarges the difficulty for the finance cleaning-up in creditor's rights,and makes the bank fund withdraw rural areas in further; at last,beyond to the outflow,it is so difficult to satisfy the farmers'need in fund,which may be not so good to the stability in rural areas.In the end,to slow down the outflow of rural fund in China,we can vigorously develop the rural economy, empower the rural fund, control financial channels for outflow and strengthen credit support to agriculture through the rural financial sector.