Study On Our Country’s Rural Financial Difference And The Influential Factors Based On The Geography Of Finance

The18th National Party Congress stated：The development of agriculture andfarmers is the party’s priority. Rural finance, as an important lever of rural economy,is the key to issues of agriculture, farmers and rural area. However, China’s ruralfinance is faced with some problems such as shortage of commercial financial supportfor agriculture, ambivalent attribute of rural cooperative banks, weakened function ofpolicy-based financial institutions,and rural financial market failures.Although theThird Plenum of the17th Communist Party of China Central Committee’s《Decisionof CPC Central Committee on some major issues—promoting rural reform anddevelopment》determined to accelerate the establishment of rural financial systemcombined by commercial finance, cooperative finance, policy-based finance, Ourcountry’s rural financial exclusion is still severe.54.8%provinces have sufferedsevere financial exclusion, regional gap of rural financial development has beenwiden, which seriously affect the establishment of a multi-level, wide coverage, andsustainable rural financial system adapted to rural characteristics. Thereforeexamining the degree of rural financial development difference and influential factorscan provide some ideas for rural financial policy.Currently there are a lot of rural finance researches, mostly based on qualitativedescription and single index analysis; Most rural financial influential factors studiesused traditional statistical model for examining rural economy’s impact to ruralfinancial, and less considered rural location, natural conditions, cultural andtechnological factors. In view of this, this paper attempts to establish a comprehensiveindex system of rural financial development from four aspects of financial amount,financial structure, financial efficiency and financial support environment to measurerural finance differences; On this basis, this article include various financialgeography factors(geography, technology, culture, infrastructure, labor, economy,level of opening up, the degree of aggregation) into the empirical analysis, to studyfinancial geographical factors’ contribution to rural financial development differencesfrom the view of financial geography, using fuzzy curve method.The results show that regional rural financial development differences aresignificant, after2005the degree of inter-provincial difference is greater thanregional differences; The geographical distribution of rural financial developmentdifference is different from three administrative region divisions; Infrastructure have the greatest influence; technological, cultural, geographical and economic factors’influence rate the second; open, labor, aggregation factors have lesser influence.Finally, this paper argues that narrowing rural finance development differencesshould not solely rely on rural economy and government support, we shouldcoordinate various financial geographical factors, with particular emphasis on ruralinfrastructure, technological and culture’s significantly improving effect on ruralfinance, thus improving rural financial endogenous development.