Run Performance Of China's Rural Non-formal Financial Analysis

This paper studies the operational mechanism and effectiveness of China's rural informal finance . In the past years, the informal financial activities which had existed for thousands of years flourished again in most rural areas of China , especially in some developed coastal regions where the informal financial activities are quite popular and in some parts the informal finance even overruns the formal finance. This phenomenon has greatly attracted our attention.Based on the forming system and operational characteristics of rural informalfinance, we analyze the operational system of informal finance from the aspects of information mechanism transaction mechanism and sponsorship mechanism of the informal finance; and on the basis of research on informal financial activities in the rural areas of Shandong province and study from the development and policy direction of informal finance in many foreign countries and regions, this dissertation puts forward the policy suggestions of the development of China's rural informal finance. This paper is composed of 5 parts.Part 1: Introduction. This part is the basis of the whole paper ,which includes some concepts about informal finance and the main organizational form of China's informal finance .Part 2: The current development of China's rural informal finance. This part gives a systematical research on the forming system and operational characteristics of rural informal finance .The research points out that the changing process of China's rural informal finance belongs to a "demand -following " financial development model and a typical induced institutional transition process; as far as the operation system is concerned , informal finance is quite different from formal finance.Part 3: The theoretical analysis of the operational effectiveness of China's rural informal finance . On the basis of the relationship between financial system and economic development , this part analyzes the operational system of informal finance from the aspects of transaction mechanism, information mechanism, sponsorship mechanism and incentive mechanism of the informal finance and points out that it is the special effectiveness of its operational system that makes informal finance can coexist with formal finance without policy support and even with policy repression. Secondly , this part gives a theoretical explanation to the effectiveness of informal finance.Part 4: The analysis of the operational effectiveness of China's rural informalfinance: an empirical research on rural informal finance in Shandong. This chapter makes a sample poll investigation on the farmers and enterprises in 13 cities of Shandong province and does a systematic research on the development of rural informal finance in Shandong.Part 5: The policy suggestions of the development of China' s rural informal finance. Based on the summary of experience in the development of informal finance in many foreign countries and regions, this chapter puts forward the system designs and policy suggestions of the development of China' s rural informal finance.