Study On The Efficiency Of County Economic Development Supported By The Credit Of Financial Institutions

Current county economy is the foundation to accelerate economic development, gradually realize industrialization,urbanization, and constructing a harmonious society, so we need to continuously develop and strengthen county economy.However, developing county economy should have appropriate financial support. With the development of county economic growth, local financial resources couldnot meet the capital requirements of economic development,Financial support has become the main source of funding, but for various reasons which lead to financial support out touch with county economy. Specifically, on the one hand, with the credit funds flowing to large and medium-sized city, there is a increasingly prominent contradictions between demand for capital and undersupplyof capital in the process of devloping county economy, which restricts to developing county economy.On the other hand, because of the county’s financial system is not perfect, credit environment is poor, guarantee system is defective and other reasons, all these lead to strong prudent loan psychology of financial institutions that greatly increases the difficulty to creditTherefore, on the premise of the credit funds relatively limited, how to allocate financial resources better is the problem need to be considered in the process of county economy.And improve the financial support efficiency will be the key factor to promote the economic development.On this account, this paper taking Xiuning County as an example,then it explored credit support efficiency and influencing factors from2002to2011by both theoretical analysis and empirical test.It can not only provide some new countermeasures to improve the efficiency of credit support but also provide new ideas for related researches and enrich the blank of relevant theory.Firstly, this paper defined the concepts of county economy and credit support,then the paper verified some related theories and literatures on credit support for economic development that advanced by domestic and foreign scholars.These theories and literatures would provide theoretical basis for the subsequent empirical analysis.Secondly,this paper summaried the actual situation on economic development, credit scale and structure and path of credit support for county economic development of Xiuning county,then understanded the problems of credit support for economic development of Xiuning County.This situation would provide a reality basis for suggestions. Thirdly,this paper constructs two models of stochastic frontier and grey correlation and selected some relevant indicators, then used stochastic frontier method and grey correlation method tomeasure the overall credit support efficiency and factors by time series data(from2002to2011)of Xiuning county.The results showed that the credit support effciency of Xiuning county at a medium level during this period and there is space for improvement;financial staff proportion,household savings rate and loan-to-deposit ratio significantly affected the efficiency of credit support,but the number of networks owned by every million people had little affaction.At the end, this paper based on the results of empirical analysis and combined with the actual situation of Xiuning County, then put forward some practical suggestions that how to improve the efficiency of credit support.This paper suggested that Xiuning County should make efforts from four aspects:including promote construction of the county financial system,improve the financial ecological environment,optimize the structure of financial practitioners,increase supervision of credit funds.These measures would actively make contribution to promote the development of county economy in a sound and rapid speed.