| Agriculture is the foundation of our national economy."Three rural issues" is the key to achieve the goal of a comprehensive well-off society. China has a very large number of the rural population, and rural economic development is an important issue related to national stability, social harmony and economic development. In the21st century, finance is increasingly becoming the core of modern economy of the world. As to China, the role of finance in economic growth is also growing significantly. Financial development and economic growth are closely related. Because of the longstanding dual structure of our economy, the economic development of rural areas needs more support from rural finance. However, the level of financial development of the rural areas is for inferior to that in urban areas, and financial repression is more seriovis. With the reform of the financial system in rural areas in the1990s, the financial institutions compete for fame and fortune, flow to the cities. The drain of money from the country becomes a serious problem, which greatly reduced the support for the rural economy. In order to promote the economic development of rural areas, we need to study the situation of the financial development of rural areas, to find the inadequacy in the running of the rural financial institutions, to recognize the influence of the inadequacy on the rural economic development.This article is divided into seven parts as follows:introduction, literature review, the theory of financial development and rural finance theory, rural economy and rural financial development status of Shandong Province, empirical analysis, policy recommendations, and conclusions. The introduction leads to the research topic of this paper. Literature review is a review of the literature of financial development and economic growth, divided into foreign part, the domestic part. Financial development theory and the theory of rural finance define the major concept of financial development theory and the theory of rural financial basic. Rural economy and rural financial development status of Shandong Province introduces the situation of rural economic development and rural financial development of Shandong Province. The empirical analysis draws on the experience of Pagno model to analyze the impact of the development of rural finance for rural economic growth. Policy recommendations section explores the path of the financial development of the rural areas to promote the economic growth of rural areas in Shandong Province. The conclusion summarizes the main content of the paper and the conclusions. |
