Study On The Outflow Of Rural Financial Resources And The Development Of Township Economy

China is a large country of agriculture. In order to sustain the stable development of the rural economy, financial support and services are very important. However, more and more rural financial resources are flowing out in recent years. The financial resources in the rural markets have the problem of structural imbalance in the process of configuration. This makes the rural development face the funding gap. So it is particularly important to study the outflow of financial resources in rural areas as well as the impact of the local economy to the outflow of financial resources, it is also the focus of this paper. This paper uses the regression analytical methods, from a newperspective--level of the village economic development to explain the outflow offinancial resources in rural areas, to illustrate that different level of the economic development has different effects to the outflow of local financial resources. This paper uses the data of three townships of Guangrao County, Shandong Province, to illustrate the different outflow of the local financial resources.This paper analyzes that different levels of economic development have different affect to the outflow of financial resources in rural areas. In the more developed towns, their outflow of financial resources will be gradually reduced, and even to achieve a net inflow of funds; in the contrary, in the more backward towns, their outflow of financial resource will be gradually increased, their own capital will be lost constantly. In the base of defining "financial resources in rural areas", through the empirical analysis, this paper shows that under the action of the capital flows preference and the capital profit-driven, the imbalance of regional financial resources allocation makes large amounts of the rural financial resources in the backward areas outflow to the profitable region and industry.This article deeply studies the deep-rooted reasons of the outflow of financialresources in rural areas, there are various reasons--economic factor, financialfactor, fiscal factor and so on. Among these reasons, the capital profit-driven and the spontaneous allocation of market resources are the root causes of the financial resources outflow. Unbalanced allocation of financial resources and the outflow offinancial resources in rural areas would lead to bad results--affecting the localeconomic development, restricting the improvement of the local income level and making the gap between the regions larger and larger. An effective way to change the outflow of financial resources in the backward rural township and to curb the loss of local financial resources is developing the local economy and improving the level of economic development, in the last the paper proposes some related recommendations.