China's Rural Capital Formation

Since the reform and opening up, Chinese economy has been rapid development, but urban-rural dual economic structure still exists,the urban-rural gap is growing.The "three rural"issue has always been a basic problem in China’s social and economic The current status of China’s rural areas is the large rural population, per capita scarcity of resources:the slow growth of farmers’income:]ow farmers’ cultural quality, low labor productivity in rural areas；The commercialization of agriculture, low level of scale. How to solve the"three rural issues" and what we should follow the kind of ideas to solve the"three rural"proposition? Development economics tells us that in a country or region in the process of economic development, capital formation plays a vital role, especially for being in the "takeoff’stage of the countries and regions.The reasons why the Chinese rural economy develop slowly is that rural areas lack of capital formation. This srticle seeks to analysis of rural capital formation less than the root of the status quo of China’s rural capital formation.This study focused on the research investment in rural areas and farmers to save, and reached the following conclusions:1,The status and characteristics of China’s rural capital formation were studied in detail,found that the fixed capital investment in rural areas the proportion of the total investment in fixed assets in falling increasingly marginalized, rural investment, rural investment, whether in size or speed on urban investment and not；dual portfolio of non-farmers and farmers from the village of investment into the dominant non-farmers, supplemented by the farmers’ investment portfolio；source of funds structure, self-financing position of absolute capital to invest in rural industry and farmers residential real for agriculture’s own investment ratio is significantly low.2,The agricultural production is seasonal,risk and regional characteristics, its capital formation must rely on external inflows, gradually increasing the proportion of urban investment in agricultural investment, which also reflects the role of individual farmers in agricultural investment increasingly smaller. Urban-rural dual economic structure of rural capital flight is bound to bring any negative impact on farmers ’production and living income, thereby affecting the growth of farmers’ income.3,Total capital stock is often used to measure a country’s level of production, capital stock accounting has always been a controversial topic, previous studies are based on the level of the country,provinces,regions and industries.Comprehensive research of previous scholars in this article, using the perpetual inventory method carried out detailed calculations of the1980-2009capital stock of the rural areas and complement the existing research in the field, but also to provide support for future research.4, Research the general characteristics of rural savings and urban and rural residents’ savings difference. Income under certain conditions, the urban and rural areas in the savings amount, savings patterns, savings motivation, there is a big difference, but with the growth of the income of rural residents, whether it is in the savings rate is the marginal propensity to save, and urban residents The trend of convergence.