Analysis Of Regional Differences Of China's Rural Cooperative Financial Development

The non-equilibrium of rational rural economic development becomes the key point of solving the issues concerning agriculture, countryside and farmers and building a well-off society. Finance is the core of modern economy, and the development of modern rural economy has a great need for financial support. With the commercial financial institutions' withdrawal from the rural market, and the weakening of the policy financial institutions' power, the rural cooperative financial organizations have naturally become the main force of rural financial system. Hence, the research on regional variation of rural cooperative finance in China has important academic and practical significances.This paper studies the differences of our country's rural cooperative financial development from a regional perspective. It firstly comprehensively analyzes the structure, size and efficiency of the eastern, central and western rural cooperative finance. On the basis of it, this paper establishes the panel data mode of the relationships between rural cooperative financial development and rural income growth.The model selects the data from 1998 to 2008; it makes an empirical analysis of the relationships between rural cooperative financial development and rural income growth. The results show that the current state of rural financial development of our country is inhibitory, the Midwest rural financial development is far more inhibitory than the eastern area, the development between regions is uneven, the gap between farmers' income in different regions is widening, rural financial system is in a state of non-equilibrium.Therefore, this paper proposes some suggestions to strengthen rural financial development:Establishing a rational property organization form according to the regional characteristics, improving the corporate governance structure, the trade management system and relevant laws and regulations, establishing a modern enterprise system, improving the level and quality of services, providing more political supports.