The Study Of Construction Of China Rural Financial Development Model

With three decades of reform and opening policy, China has achieved remarkable economic development and the national economy has maintained a rapid development momentum. However, as a large agricultural country, the relatively backward rural economy has not been improved effectively and still existence of uneven economic development in urban and rural areas. Backward rural economy, low efficient agriculture and low level income of farmers are obstacles to hinder the further development of the national economy. How to develop the rural economy has become a difficult problem to the government. There are many reasons, but the low level of financial development in rural areas, and rural development can not get enough financial support is an important aspect. Therefore, the first is to promote the development of rural finance. But the existing theory of financial development is a departure from China's rural financial development. There is some guide to the development of China's rural financial guidance, but less pertinence. Therefore, the research on model of financial development in rural is very significant for China.From China actual situation of the rural financial development, the paper combines the theory of financial development and rural finance development. Based on a series of assumptions, the paper constructs the model of China's rural financial development in the general form:the function of rural financial assets, the total function of the rural economy, the function of the degree of monetary financial institutions in rural areas and the number of financial institutions. With the introduction of constraints, the model solved the basic equations and derived growth factors. The model results show that:there is existence of a stable rural financial development growth path; low level of financial development in rural areas will catch up in areas of high levels; The expansion of rural financial institutions for the improvement of rural financial development and the effect for the speed is temporary, but has a huge role in promoting development of rural finance.To verify the correctness of model, the paper adopts the economic simulation and software MATLAB7.0 to simulate. Firstly, we establish the model of China's rural financial development in the specific form. Secondly, we use the Simulink and the module structure simulation, properties and parameters to run the simulation model. Finally, we derive the output of the simulation results. The result of simulation model is the same to the Chinese model of rural financial development, which verify the correctness of the theoretical model.Based on the conclusions, the paper promotes the measures of rural financial development. China's rural financial development should adhere to minimize transaction costs, follow the principles of needs and market-based. On this basis, the Government should improve the legal system of rural finance and establish a deposit insurance system and the economy-government intervention and a clear perspective of property rights system and so as to improve the environment for rural financial development. In addition, the government should allow the formal financial institutions to enter rural areas, cultivate informal village banks and guide the development of rural financial institutions.