Research On The Rural Financing Model In PanJin Area

Along with more attention to the ‘three-dimensional rural issues’ in china,various social resources have been tilted into agriculture, farmers and countryside,which make the agricultural production and rural economy get gradually developed.In this development process, agricultural funds and rural financing model give afundamental impetus to the ‘three-dimensional rural economy’. Due to the agriculturalinferiority and the finance’s pursuit of profits, the rural financing model is incontradiction with the rural economic development, and this phenomenon is obviouslyexisted in PanJin’s rural financing market. This paper is going to set up PanJin as theresearch area, and mainly analyses the rural financing contradiction in Panjin area aswell as the path of optimization in PanJin’s rural financing.Based on the theoretical analysis of the supply and demand equilibrium theory offinance, this paper mainly explores the contradictions of PanJin’s rural financing.Firstly, we overview three theories about rural financing, which concerns the subsidiesfor agricultural credit, rural financial markets and imperfect competition; Then, wereview rural financing systems in United States, Germany and Japan to get someexperience.After a brief description of the PanJin area as well as its rural financingconditions, we do the demand and supply analysis of rural financing models in PanJinarea. As to the financing demand analysis, we get three results. The first one is that thecapital demand of Panjin’s rural financing is very large and there are several kinds offinancing needs; the second one is that capital requirements are impeded because ofagriculture inferiority; the last one is that poor rural credit environment reduces theefficiency of financing. As to the financing supply analysis, we believe there is a lackof rural financial supply in PanJin area, the rural formal financial functions are weak,as well as the wrong role of local government. After that, we use theunbalance-balance analysis of demand and supply to research the rural financingproblems in PanJin, and hope to find the right path to optimize it.Therefore, we propose the optimal path of rural financing mode in PanJin area.The first one is to improve the rural financing environment in PanJin area; the secondone is to build a diversified style of financing model in PanJin area; the third one is to establish the rural funds closed loop mechanism in PanJin area; the fourth one is tocreate a good rural credit environment in PanJin area; the fifth one is to replay the roleof local government.