Regional Differences Of China's Rural Financial Development And Its Convergence

China is a large agricultural country,60% of the population where live in rural areas, and 90% of the land in rural areas. China's rural economy is the basis for stable development of the national economy. China's rural regional economy is an important component of economic development, Degree of regional economic development in rural areas, which has important effect upon China's regional economic development. However, finance plays an important role in the regional economic development in rural areas. Regional differences in financial development will inevitably restrict the development of regional economy. In the implementation of regional economic development context, How to quantify the differences between rural regional development and rural finance development of the regional differences whether is convergence or divergence, as if this issue has an impact on China's rural economic growth, and it is the relevant factors to achieve coordinated economic development in rural areas.This paper begins with the scale of rural finance and the degree of financial deepening there is a preliminary comparison in these two areas of the 1998-2008 Regional Development of China's rural financial conditions, it is obvious that the scale of rural finance in China has more differences.the degree of financial deepening in the eastern region by 2006 which is higher than the central and western regions, however, the western region is more than the eastern part after 2006. Then the coefficient of variation and Thiele index and its decomposition on China's rural financial development of the regional differences in analysis of changes, compared to the whole range of these two indicators, the standard interest rate, the Ginny coefficient and Kuznets ratios and other indicators, more fully reflect regional differences in China's rural financial development and the measurement region to region and intra-regional differences between the development of rural financial contribution. Analysis of China's rural financial development comes in 1998—2008, the trend of regional differences which is first and shrinking enlarged. Decomposition by the Thiele index found differences in China's rural financial development within the region mainly from the difference between the three, which scholars in the past between the country's financial development is very different conclusions; Finally, we use the theory of convergence of the convergence ofσ,βconvergence and the "club" Convergence of China's rural financial development were regional differences in inspection, testing come to the regional development of rural financialσconvergence does not exist, but there is absoluteβconvergence, while the regional financial development also showed a certain degree of" club convergence "features.In the rural provinces to quantify regional differences in financial development and convergence of the movements, we should narrow the differences between various regions in rural areas started to take differentiated monetary policy, local conditions to develop appropriate policies for economic development, it is important to reduce the development gap of China's rural areas.