Study On The Impact Of Rual Financial Development On Rual Economic Growth In Shanxi Province

In recent years，along with the pace of China’s urbanization accelerating unceasingly，theurbanization level is improved obviously. However，rural economic growth is relativelybackward，and Double-Economic structure has became a large obstacle to economic andsocial progress. So，in urban development，our coutry should increase the financial supportto rural areas. The rural financial support has irreplaceable function for rural economic growth，hence constructing a reasonable rural financial system is necessary. At present，most of therural financial service in our coutry is not perfect，which seriously hinder the growth of ruraleconomy. So，the relevant study of rural financial development and rural economic growthhave became the focus of government and researchers，and exploring the impact of ruralfinancial development on rural economic growth has a great significance. Shanxi Province isa big agriculture province in the central region，and three rural issues have been one of theimportant problems which may restrict the rural economic growth，thus the allocation problemof rural financial is the key to solve the problems of" agriculture，rural areas and farmers".Taking Shanxi Province as a example，this paper mainly study on the impact of ruralfinancial development on rural economic growth. Firstly，by analyzing relevant theory，thispaper build the two-sector model on the impact of rural financial development on ruraleconomic growth. Secondly，base collecting the data of Shanxi Province from1980to2012，building the index system of rural financial development and rural economic growth on，thispaper build the VAR model and state-space model by Eviews6.0software. In addition，basethe data sample of Shanxi prefecture-level cities on，this paper analyses the impact of ruralfinancial development on rural economic growth. In the end，in view of the two parts ofempirical analysis，this paper put forward the relevant policy and suggestions. Through the results of empirical analysis，we conclude that the impact of ShanxiProvince rural financial development on rural economic growth is not remarkable，and appearthe phenomenon of "rural financial repression "，and the impact of the regional rural financialdevelopment on rural economic growth has certain differences. So， Shanxi Province mustaccelerate rural financial reform，expand the scale of rural financial development，improvethe rural financial operation efficiency，optimize the structure of rural finance. If so，the ruralfinance may provide better service for rural economic growth. Also，according to differentregions，government should adopt corresponding rural financial policies.