Study On Relationship Between China's Rural Financial Development And Rural Economic Growth: Theory And Empirical Analysis

Finance is the core of the economy, the rural financial system directly affect the growth of rural economy. How to achieve the growth of rural economy has always been big issue to be solved in the process of China's economic development. At present, the rural finance deficiency become more prominent in many factors restricting the growth of rural economy. Therefore, achieving the growth of rural economy must pay sufficient attention to the construction and improvement of the rural financial system, and the study about relationship between the growth of rural economy and the rural financial development become the priority. In this paper, we analyze the mutual function mechanism between the rural finance and the rural economic growth and use the empirical methods to measure the relationship between the rural finance and the rural economic growth. Meanwhile, the paper using the innovative method demonstrates the market structure of China's rural finance,and obtain the conclusion that the monopoly of the rural credit unions promote the growth of rural economy in short-term instead of impeding economic growth. Finally, we put forward some constructive policy suggestions in view of according to the problems of rural financial development. The full text is divided into six parts:The first part, the introduction. This part introduced this paper's topic background and significance, the research line, the research method and the innovation.The second part, Summary of the thesis. This part summarize the theories about financial development and focus on the domestic and foreign research present situation about China's rural finance.The third part, the mutual function mechanism between the rural finance and the rural economic growth. This part research the mutual function mechanism and obtain the conclusion that the rural financial development is coordinated with the rural economic growth. Completing the virtuous cycle in the rural economy and rural financial development can maximize the return on the rural economy.The fourth part, the overview about China's rural economic growth and rural financial development. This part analyze the current situation about the rural economy and rural finance, which the rural economy can not effectively give birth to the rural finance and the rural finance deficiency can not really support the rural economic growth.The fifth part, the empirical analysis about the relationship between the rural financial development and the rural economic growth. It is found that the rural financial market still perform as "type of supply-leading" and the rural financial system can not meet the need of rural economic growth. At last, we summarize and analyze the reasons for existing problems.The sixth part, policy suggestions. It is proposed that we should improve the rural financial system to support the rural economic growth from three dimensions of scale, structure and efficiency and create a good rural economic environment to achieve virtuous cycle in the rural economy and rural financial development.