Research On Financial Support To The Development Of Rural Economy

"Three rural issues" has been the focal point of work of the government. Financeas the core of economic development, is of importance to "Three rural issues". Atpresent, the rural financial foundation is so weak that the supply of the ruralfinancial service can’t meet the demand of the rural area. The financialinhibition has become the "bottleneck" for the rural economic development. Inview of this, how to make the finance play a full play in promoting the ruraleconomic development and solving in "three rural issues", is the key of thereform of the rural area and the development of the rural area.In this context, this paper, making jiangsu province as an example, being basedon the theory of the relationship of the finance and economic development andthe rural financial development, described the status of the supply and demandof rural finance in jiangsu province and found that there are many problems inthe rural area, such as the unbalance of supply and demand of the ruralfinance,the existing of large informal finance, the reduce of formal financesupporting agriculture, the backward of rural insurance. Its reason, mainlyinclude the following several aspects: the young quality of agriculture limitingthe fund issuance, the rural financial system defects not supporting the ruraleconomy effectively, the rare of the rural financial product,the rural externalenvironment condition, etc. This paper, use AK model to savings and investmentconversion, savings rate and capital marginal productivity as measure of theeconomic implications of financial index and the linear regression analysismethod to proving the relationship of finance and economy in rural area. Theempirical analysis found that jiangsu province rural finance and policy influencethe rural economy significantly. In the above analysis, based on the advancedexperience both at home and abroad, this paper puts forward some suggestion,such as optimizing rural financial system, optimizing financial support system,optimizing insurance system.