Study On The Outflow Of Rural Capital

At present, China is in the critical period of "industry nurturing agriculture and cities support rural development",the development of new rural areas requires a lot of money. However, one of question of China's rural areas is there is a serious shortage of funds, capital outflows on the other hand is very serious, according to statistics from 1994 to 2003, more than 800 billion yuan outflow from the rural areas by rural credit cooperatives, postal savings funds and Agricultural Bank of China.in 2007, the Agricultural Development Bank, credit cooperatives, postal savings institutions in the county absorbs the four categories of total savings deposits of more than about 12 trillion, when all agriculture-related loans in about 5 trillion. there is about 7 trillion yuan outflow of rural.the outflow of capital of rural areas is not conducive to China's economic development in rural areas and not conducive to China's economic restructuring in rural areas, exacerbating the wealth gap between urban and rural areas. Therefore, the study of China's rural areas, capital flight status, causes and channels to explore the rural areas of China to ease capital outflow measures is particularly urgent.With the tendency of China's support policy in rural areas, financial institutions, including rural credit cooperatives, rural commercial banks, postal savings and agricultural banks, and so on is the main channel of China's rural areas of China's rural capital outflow.China's rural areas, resulting in capital outflow because both financial institutions 'credit crunch' level of reasons, and a variety of economic entities in rural areas of China do not want to loans from financial institutions.Resulting in China's rural financial institutions 'credit crunch' of the main factors include the relatively low returns in China's agriculture, lack of collateral, credit institutions in rural areas of China is not perfect, and so on, while the main body of China's rural economy of China's rural areas are reluctant to finance The main reason is due to lending institutions to achieve financial control policies of China's rural economies of the main result of higher interest rates to bank lending as well as from private financial institutions an alternative to formal financial institutions, these two effects lead to China's rural financial institutions overall "surplus funds" are more due to financial benefits or reduce, this part of the "surplus funds" out of rural areas through various channels, resulting in an outflow of funds in rural areas of China.China's rural areas is not conducive to the outflow of capital construction of new countryside in China, is not conducive to the development of China's rural areas and the "three rural" issues. Therefore, we must take various measures to alleviate the outflow of funds in rural areas of China. Because rural areas have some of the financial characteristics of public goods, so our government through the "visible hand" of China's rural financial market intervention in order to promote the return of capital of China's rural areas, similar to the U.S. These measures include the "Community Reinvestment Law "and the establishment of financial institutions in rural areas, credit risk compensation mechanism. In addition, Japanese and Korean model of integrated development of rural cooperative economic organizations, to increase economic activity in rural areas of comparative advantage. Finally, take all measures to make bank lending risks and benefits match, through the market mechanism to promote the role of financial institutions in rural areas to the main body of China's rural economic loans, to facilitate the return of capital of China's rural areas, rural areas of these measures and restrictions on financial institutions, interest rate controls, integrated play formal and informal financial institutions, financial institutions, strengths, foster rural intermediaries and so on.