On The Banking Development And Growth Of Dual Economy In Xinjiang

There is a typical feature in the economic development of Xinjiang,so studying the mechanism of dual economic development and growth, Could help diminish the gap of urban-rural and promote the transformation of dual economy structure.There are many reasons to influence dual economic economy growth,for example,the comparative labor rate,structure of employment,credit of banking,etc.In view of the important function of capital's accumulation to economic development,this paper studied the topic from the perspective of the banking development of Xinjiangand analysed the running mechanism of the development of bank to agricultural development,non- agricultural development,the gap of urban-rural and the transformation of dual economy.There are three parts in this paper. Firstly, the working mechanism between banking and dual economy was elucidated.By so doing, we can easily make a conclusion that the reasonable development of banking would do good to dual economy transition.Forethemore, an overview to the banking development and dual economy was carried out in detail by description statistic methods in Xinjiang. As a result,we know that the banking and dual economy owned the same increasing tencency.According to this,the paper come up with the theoretic premise that there is a long and stable relation between them.Finally,by means of empirical methods to verify the formal premise of theoretical analysis. The empirical study demonstrates that the poor development of banking is one reason for amplifying the urban-rural income gap,not only in case of single variable but also multivariable cointegration test.On the aspect of dual economy growth,the relevant ratio of agricultural credit and the efficiency of banking are playing a positive part in dual economy transition.While the banking monopoly type of market structure not only does harm to forming banking's inner competition fully,but also developing the rural finance market, which would depress the development of dual economy in Xinjiang.The general conclusion of paper is that there is intimate relation between banking development and dual economy transition,while the developing of banking is badly in Xinjiang, and it is disbalanced between town and country.Therefor,the level of banking developing is the key constraint variable to the transformation of dual economy structure in Xinjiang.So,we can come up with such countermeasures and advices that advancing banking organization distribution balanced between urban and rural,enhancing the competition, paying more attention to establish rural banking serving system, encouraging agricultural credit by working out preferential policies.Let the banking finely serving to the dual economy growth of Xinjiang..