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

Jilin is not only a large agricultural Province growing Corn and wheat, but alsois a Province with a high proportion of agricultural population which the economicgrowth in rural area is in poor conditions. so the "three rural" issue has beenincreasingly serious in front of us, This article aims to seek out the effect factorsbetween Jilin rural financial development and rural economic growth so that we canbring forward some related recommendations.Chapter one, the article Summarizes several different styles of Relationshipsbetween financial development and economic growth through domestic and overseasliterature review. At the same time we use the experience of empirical researchmethods modeling and approach in some literatures to increase the credibility andcorrectness of the article.Chapter two, We include the rural financial development theory: Theory ofagricultural credit subsidies、the rural financial market theory and the imperfectcompetition of rural financial market theory when giving an outline of the financialdevelopment theory. It can help us hit the point in seeking the restraining factors inthe process of economic growth through introducing mainstream ideas of thefinancial development theories.Chapter three analyzes the status of Jilin Province’s rural financial developmentfrom the macro and micro levels. In the macroscopic level there are several parts:(1)agriculture policy supporting and Capital investment situation (2) the infrastructureconstruction in rural area (3) The rural financial service environment including Credit environment、 financial facilitating agency and Agriculture insurancesituation (4) Monetization degree and rural residents income information. In themicroscopic level there are several parts:(1) the need of Peasants.（2）The ruralenterprise needs. We can know about the Advantages and disadvantages between therural financial development and the economic growth through the above analysis inJilin Province.Chapter four, In the empirical research component we apply Finance、Economics and Econometrics model to analysis the Related financial data from year1978to2010in Jilin province and Build VAR model. Draw a conclusion accordingto Augmented Dickey-Fuller Test、Johansen test、co-integration test、Grangercausality Tests、Impulse response function and variance decomposition test.Chapter five,According to the above empirical results we obtain therelationship between rural financial development and the economic growth.wepropose some recommendations to make some contribution to the economic growthin Jilin province basing on the influencing factors.