The Problem Of Rural Capital Accumulation In China

For a long time, agriculture has made tremendous contributions to the development of the national economy, but the rural economy has been deprived of their status. The Government's long-term strategy tend to give priority to the development of heavy industry , it resulted in the economic structure of a typical binary. According to the theory of economic growth, accumulation of capital plays an important role in the national economic growth. Agriculture is the weak link in our country, the capital accumulation rate of farmers is low, revenue growth is slow too, low-income cause further capital accumulation difficulties. Capital accumulation in rural areas are to break the vicious circle of economic growth.The thesis using the theory of economic growth, the theory of financial development and the dual economy theory discussed the importance of rural capital accumulation for economic growth. The thesis analyzed the economic development of Chinese rural areas and the impacts on rural capital accumulation. Because of the long-term strategy by giving priority to the development of heavy industry and the late 1980's reform focus on cities, agricultural production inputs are seriously insufficient. Influencing factors are shortage of national financial input, the weakness of agriculture, the credit crunch of financial institutions, land system, the scale of farming operations, slow growth of farmers' income and so on. The thesis analyzed foreign experience of rural capital accumulation , including agricultural land finance, farmers' education, financial support for agriculture. In the last part, the thesis gave five proposals to improve rural capital accumulation.