Study On Rural Finance Development And Rural Economy Growth In Gansu Province

China is a large nation of agricultural. The situation of agriculture and ruraleconomic growth is related to China’s economic prosperity and social stability.Economy development is inseparable from the support of financial institutions,especially formal financial institutions. And a perfect rural regular financial systemtakes a crucial part in rural economic growth. Since long ago, people have widelyconcerned about rural financial development and economic growth. Judging from thecurrent situation, the reform of financial system lags far behind the economic reform,and the situation of outflow of funds is more and more serious, which remain ahindrance to economic growth in a certain extent. So, how to set up the benigninteraction between rural formal finance and rural economic growth to promote wholeeconomic growth and social stability, is an issue to be considered seriously.Gansu is one of the provinces famous for its farming production in westernChina. Compared to the eastern coastal developed area, Gansu rural infrastructureconstruction is very poor, but there is natural advantages and potential developmentpower. This paper focuses on Gansu province. On the basis of understanding financialdevelopment theory and economic growth theory, this paper introduces presentsituation of main rural formal financial development and rural economic growth inGansu province firstly. Then, this paper uses unit root test, co-integration test andGranger causality test to analyze the relationships between the two. In the end，summarizing the problems of Gansu rural formal finance development in promotingeconomic growth, this thesis offers suggestion to promote perfect rural formalfinancial system.