Study On The Financial Market Segmentation And The Rural Fund Allocation Efficiency Of Guangdong Province

So far from “the Opening up and Economic Reform”, the government has releasedmore than ten documents to stress the priority of serious “three rural issues”. It’s ofgreat importance to boost the rural economic development. Accordingly，to simulaterural economy growth, not only relies on large sums of capital investment, but alsoan efficiency capital allocating mechanism. Another problem is the capital flow iscurbed amid these rural areas to a certain degree, as it’s called “the segmentation ofrural financial market”.In order to find ways to improve the efficiency of capital allocation in rural areas, Iused DEA method to measure technical efficiency and scale efficiency of17ruralareas in Guangdong Province from2001to2010, and the results show that most ofthese rural areas are of inefficiency allocation and non-effective in the stage ofdiminishing returns to scale. In addition, the Tobit regression analysis showed that,market segmentation didn’t cause a loss of allocative efficiency as the theory impliedpreviously. The constraints of the urban-rural dual structure and financialintermediation level of development cannot meet the needs of the rural areas. Thedeeper the degree of government involvement in the economy, the greater thenegative impact on the efficiency of capital allocation in rural areas.