Research On The Relationships Between Rural Finance And Rural Economy Development Of Shandong Province

At present, a comprehensive solution to "three rural issues" is very important to development of modern agriculture. While the rural finance to the rural economic is like the blood to our body. Its development directly affects the efficiency and quality of the development of rural economic. Currently, the development of China’s rural finance is still weak compare to the finance development in city. Thus, the research in development of rural finance changes is of great significance to the rural economic development.Shandong province is a big agricultural province in China. The equilibrium condition of Shandong Province Based on geographic location and economic development in the province. Shandong can be seen as a microcosm of the national economic development situation, this paper through the analysis to explore the relationship between Shandong rural financial development and economic growth so that we can have a better promote to solve the three rural problems.This thesis consists of seven parts:The first chapter is the Introduction. This chapter mainly introduces the research background, the purpose and the significance. Then it has a brief description of the research ideas and methods, and finally it introduces the difficulty and innovation in the process of the writing, as well as the insufficiency and the future direction of further research and improvement.The second part is the summary of the thesis. This part summarizes the theories about financial development and focus on the domestic and foreign research present situation about China’s rural finance.The third chapter is the analysis of Shandong rural economic development present situation. Through the analysis of agricultural production in Shandong province, we can see that the gross agricultural production ranked first for many years, but the per capita agricultural GDP ranked eighth in the country. Shandong province still needs to further promote the industrialization of agriculture development. Through comparative analysis of comprehensive of income of rural residents in Shandong Province, the per capita income of rural residents in Shandong province and the city has a large gap, and the gap is becoming more and more large, and the per capita income of the various regions of Shandong province rural residents also have great differences.Analysis of the status of rural financial development in Shandong Province is in the fourth chapter. Firstly, the paper introduced the development of agriculture of rural financial institutions in Shandong Province, and then it discusses the overall status of rural finance in Shandong province from agricultural loans, rural credit and rural financial ecological environment. We conclude that the rural financial needs to deepening reform in Shandong province.The fifth part is the empirical analysis about the relationship between financial development and the rural economic growth. This part by using the Pagano model as the theoretical model, through processing variables, select data and index to construct the model analysis of the input case, we can have that there is a long-term stable relationship between growth and rural finance.The sixth part provides policy suggestions. It is proposed that we should improve the rural financial system to support the rural economic growth from three dimensions of scale, structure and efficiency and create a good rural economic environment to achieve virtuous cycle in the rural economy and rural financial development.