Our Country Rural Area Financial Efficiency And Effect

As a huge and vast country, China’s regional rural economic development shows a great imbalance obviously. And promoting the coordinative development of the regional rural economic have been a major issue of concern to the government. Rural finance is the core of modern rural economic and the key problem of its sustainable development is efficiency, so the improvement of rural financial efficiency level has become the key of rural development. This paper mainly studies the regions’rural financial efficiency and its effects, puts forward some corresponding suggestions, in order to improve regional rural financial efficiency and promote the regional rural economic coordinative development.Firstly, based on the constructing of rural financial efficiency’ evaluation index system in China, the regions’rural financial efficiency in China is dynamically analyzed in terms of three aspects, the mobilization efficiency of financial savings, the conversion efficiency between savings and investment, as well as the efficiency of investment orientation. Besides, factor analysis approach is also adopted to comprehensively analyze various data and statistics. The results show that the regional difference of rural financial efficiency is obvious, as a whole, the rural financial efficiency in eastern region is higher than that in central and western regions. However, the central region presents the typical "collapse" feature.Next, this paper uses panel data model and time series model respectively to do empirical research, tests the differential effect that regional rural financial efficiency to the rural economic growth and the upgrading of industrial structure. The empirical results show that, there is a long-term equilibrium relationship between rural financial efficiency and rural economic growth in eastern and central region, which doesn’t exist in western region. Under the long term effects, all of the regions have the stable and equilibrium relationship between rural financial efficiency and upgrading of rural industrial structure, but only in the western region, the bilateral granger causality is existed. Under the short-term impact, the effect that rural financial efficiency to upgrading of rural industrial structure is not significant in eastern region, while it is significant in western region and promotes the upgrading of rural industrial structure, the conversion efficiency between savings and investment suppresses the upgrading of rural financial efficiency in central region.At last, bases on the empirical results and the perspective of region, this paper puts forward some corresponding suggestions from the following six aspects:rural financial policy, development orientation of rural finance, rural financial institutions system, rural financial market system, and rural financial environment.