Empirical Study On The Causes And Effects Of Urban-rural Dual Financial Structure

China has a typical urban-rural dual economic structure and characteristics of the dual financial structure, facing a severe test to resolve the urban-rural dual economic, financial structure, urban and rural finance, economic development, and promote the process of urbanization. Based on the economic, financial background, this paper will focus on the urban-rural dual financial structure of the main body of this study, through the view of economic and political point to analyze the influencing factors of China’s urban-rural dual financial structure and its impact on economic development, then, based on the country’s economic and financial development data, use the vector auto regression model (VAR), the unit root test, co-integration test, impulse response analysis or analysis of variance based on the test results to analyze the influencing factors of China’s urban-rural dual financial structure and its impact on economic development. Thus, find the dual structure of urban and rural financial impact factors and the effect of the dual economic structure, and for the results to eliminate the urban-rural dual financial structure, promote the coordinated development of urban and rural economic policy recommendations.The results show that in the process of the emergence and development, China’s urban and rural finance shows an obvious duality characteristic. Its reason mainly from the duality of economic and financial control from government, whether long-term or short-term, the two have always been the dominant factor in China’s urban and rural financial structural reinforcement. And, in the long-term, Urban-rural dual financial structure is also affected by the differences between urban and rural investment. At the same time, deepening of urban and rural dual financial structure strength will lead to the strengthening of the economic imbalances between urban and rural areas development, scenically, the strengthening of the urban-rural dual economic structure. In the long-term, the dual financial structural strength of China’s urban and rural areas and the urban-rural dual economic structure strength are positively correlated; in the short-term, China’s urban-rural dual financial structural strength is relatively weak impact of the dual economic structure, and this effect over time while continuously strengthened.Based on the conclusions of this study, this paper puts forward the following policy suggestions for urban and rural financial Duality:Firstly, coordinating urban and rural economical development, when in the pursuit of the rapid development of the national economy, we also need see that the reality of economic development in rural areas is lower than the level of the national economy as a whole, and the urban economic development and the rural economic development "grasp with both hands", so that we could gradually narrow the economic development gap between urban and rural areas.Secondly, on the way of industry nurturing agriculture and city nurturing countryside, we should take into account the short-term benefits and long-term interests, and avoid blind investment.Thirdly, relaxing the control of the Government of the grass-roots financial institutions; enhancing grass-roots financial institution’s operating independently and autonomous decision-making, self-management ability.Lastly, according to the difference of urban and rural loan problems, we should enhance the ordinary household credit support, and moderately lower threshold for loans to farmers to solve the problems of farmers in getting loans.