A Study On The Relationship Between The Development Of Rural Finance And Tne Growth Of Economy In Jiangxi Province

In recent years, Increase of economy is the eternal topic in the Economics circle, Finance is the core of the modern economic society. The relation between the development of finance and increase of economy is given more and more attention. Since reform and opening-up, the system reform of China’s rural economic is deepening, but the strategies which have adopted such as paying great attention to the development of cities and industries, interfering the financial events of the rural area, together with systematically lacks of countryside financing, have not made the rural financial system prop the development of countryside up.Jiangxi province is a big agricultural province, The development of rural economy is important constituent of the development of the national economy, Deeply research of rural financial development and economic growth and building a good relationship between the rural financial system are very important for the development of the rural economy in the countryside and for the adjustment of rural industry structure. In the key era of financial system reforming and economical structure adjusting, is there some connection between the financial development and economic increase in Jiangxi rural area? What is the effect of financial development on economic increase in jiangxi rural area? The paper contains the two parts of both theoretical and empirical research on these issues and make a preliminary response to the questions proposed above.In this paper, firstly the domestic and foreign research results in this field are briefly reviewed, this thesis constructs proper variables of financial development and economic growth. and researches mainly the relationships of economic growth with financial deepen extent and development efficiency respectively. This analysis technique constructs VAR model and makes Granger causal analysis on variables of financial development and economic increase in Jiangxi rural area, At the end of the paper, Based on the front of the empirical research, The paper Proposed solutions solution to the Jiangxi rural financial problems existing in the development.In this paper, with the examples of Jiangxi’s present conditions of agricultural and rural financial development , the author found out their interrelation through analysis of historical data, and thus got a conclusion that there was financial repression in Jiangxi rural areas. The paper also made the following policy Suggestions According to the above conclusion. Firstly, improve the rural financial system base on the the existing framework; Secondly, standardize and develop rural non-formal finance and make the rural financial system diversification; Thirdly, make more easonable regulatory standards for rural finance; Fourth, develop the rural credit guarantee institutions system; Fifth, gradually promote market-oriented interest rate in rural areas. These are for promoting the development of Jiangxi or other depressed rural areas like Jiangxi.