Research On Relationship Between Rural Financial Development And Rural Economic Growth Of Our Country

With the development of society and economy, the progress of financial development also goes into people's perspective; from the researches of some scholars, we found that there is a relationship between financial development and economic growth. The improvement of the financial theory, also expand the scope of researchers working on. Recently some researchers started to study the relationship between the rural financial development and the rural economic growth.Since the reform and the opening up of our country, the positive exploration on the change of finance system is on the way with the economy change going on, too. Our country is a large agricultural nation; the rural economy is an integral part of the national economy, and the role of rural finance, which in the development of rural economy and reformation, cannot be replaced. At the begin of new century, our government put forward to sole the three issues of rural firstly, and then puts forward to the construction of socialist new countryside, and the core of the issues is the development of rural economy. At the same time in years of government work statements more than once put forward to develop the rural financial, and to build the rural financial system, making the rural financial can serve the socialist rural better. In this context, there is positive significance to the adjustment of the industrial to the building of the rural finance system and to the rural economy development by studying the relationship between the two.The article firstly introduced theories of rural financial, analyzed the characteristics and limitations of rural finance. Then this paper reviewed the development of rural financial and rural economics in our country. At last this paper used the time series between 1978 and 2009 to do a study about the relationship between rural financial and rural economics.From the results of quantitative analysis, we can see that there is a mutual influence between the efficiency of rural financial development (or loan-to-deposit ratio) and rural economics. However, the impact between the structure of rural financial development and rural economics is not significant. Overall, the rural financial development and rural economics growth also have a positive correlation, no matter whether long-term or short-time.Finally, on the base of previous research, we give suggest from four respects, in order to improve the mode of rural financial development, to change the role of it, from 'passive' to 'active', then it will take more conducive to the rural economics growth.