Research On Relationship Between Financial Development And Economic Growth In Rural Areas Of Jilin Province

Since ancient times China is the world’s large agricultural country, thenumber of rural population is more than half of the number of the country’stotal population, the issue of countryside, agriculture and peasants must be akey point in the process of achieving modernization process of China. JilinProvince is a major agricultural province, it is an important commodity grainproduction base in China, promoting rural economic growth is important ineconomic development working of Jilin Province, the effective support of ruralfinance and rural economic growth can not be separated. Since the reformand opening up, Jilin Province has followed the principles and policies ofcontinuously deepening the reform of rural financial system, rural financialmarket obtains much progress,the rural financial supply is increasing, butthere are still many deficiencies,so how to improve the rural financial servicesystem and promote economic growth in rural areas is the primary problem.This article is a study on the relationship between financial developmentand economy growth in rural areas of Jilin Province, the article is divided intofive chapters:Chapter Ⅰ: Introduction. The article introduces the background andsignificance of selecting Jilin Province as the research object, combingsresearch ideas, builds a research framework, and points out the researchmethods and innovation.Chapter Ⅱ: Theoretical analysis and literature review. The article reviewsthe modern financial development theory represented by Gurley and Shaw,and mainly introduces rural financial development theory, states the great influence of rural finance development towards rural economic growth,making good theoretical preparations for later empirical research.Chapter Ⅲ: The development status of rural financial and rural economicof Jilin Province. The article introduces the development status of ruralfinancial of Jilin Province from two sides: the status of rural financialinstitutions and the analysis of rural financial development indicators. Thearticle measures the level of rural economic development of Jilin Provincethrough the indicators of the level of agricultural development, the level ofincome of rural residents, the status quo of rural fixed assets investment andthe status quo of financial support for agriculture.The way of combinativechart and table makes description more specific and more easy to understand,making good data preparations for later empirical research.Chapter Ⅳ: The empirical research of the relationship between financialdevelopment and economy growth in rural areas of Jilin Province. The articlemeasures the level of financial development in rural areas of Jilin Province byindicators of financial development scale, financial development efficiencyand financial development structure, the article selects economic time seriesfrom1981to2011, builds a VAR model and analyses the relationshipbetween financial development and economic growth in rural areas of JilinProvince by unit root test, cointegration test, Granger causality test, impulseresponse analysis and variance decomposition, the empirical analysisconclusion shows that, rural economic growth and rural financial developmentscale, rural financial development efficiency, rural financial developmentstructure is positive correlation and unidirectional Granger causality, thisshows that rural financial development and rural economy growth of JilinProvince influence each other, but financial reform and economic growth cannot be consistent, so the Jilin Provincial Government should put rural financial reform and innovation in the first place and promote the increasing of ruraleconomic.Chapter Ⅴ: Financial support suggestions for promoting rural economicgrowth of Jilin Province. This article proposes some rational policysuggestions basing on the empirical research results and the analysis of thereasons for lack of financial development. Establishing diversified ruralfinancial service system, riching rural financial products and tools;Increasinggovernment support for agriculture, remodeling rural creditenvironment;deepening reform of rural credit cooperatives, supportingdevelopment of informal rural financial orgnizations.