An Empirical Study Of Rural Finance And Economic Growth In Hebei Province

Hebei province is a big province of rural economy, agriculture and rural economy occupies are very important to its national economy. This paper selects Hebei province as a research objection that based on previous years data of the development of finance and economy in order to research the rural development level of economy and finance, as well as the support function of the rural development level to rural economical growth. This paper has used the description method and real diagnosis analysis method to research the financial and economic growth in rural Hebei Province.Firstly the paper reviews the concepts of economic growth and rural finance, and viewed the rural finance and the relationship between economic from different aspects, then analysized the basic condition of rural finance and economy of Hebei, on the basis of which analysized the development level of finance of Hebei using the finance development theory, lastly examinated the support function rural finance development to economical growth using the economical data of Hebei. The research indicated that there is a long stable relationship between the development level of rural finance and rural economical growth, Granger causes and effects examination has indicated there existed a mutual Granger causes and effects between the development level of rural finance of Hebei and rural economical growth.The real diagnosis result has confirmed that the development level of finance and economical growth are mutual restricted promoted and influenced. Economical growth is the power of finance development,however finance development has a strong reaction to economical growth, the two must develop coordinately. If rural finance development are restricted artificially,then it must restrict and prevent the economical growth. In view of the development level of Hebei,the concealed policy conclusion is speeding up the reform of rural financial system and improving the financial development level have great significance to the economical growth.