Research In Hubei Province Rural Financial Development And Rural Economic Growth

With the recent pace of urbanization continues to accelerate, the level of urbanization of our country also has significantly improved, but this is relatively lagging the development of rural economic, thus forming a typical urban-rural dual economic structure. The rural areas are so different from the modern city, forming the two levels of rich and poor differentiation. Unbalanced urban and rural economic development caused great obstacles to the overall development of China’s economy. Therefore, while accelerating the development of urban economy, we should also pay more attention to the rural economy, and vigorously promote the development of rural economy, promoting the structural transformation of the rural economy and narrowing the economic development gap between urban and rural areas, in order to protect the urban and rural economy coordinated and high-speed development. China wants to develop the rural economy, then rural finance can be a proper perspective to study. Development of the entire national economy needs to be based on the development of rural economy, and rural finance can also get a good village to promote rural economic growth. Hubei Province, located in the center of China, is a major agricultural province, which has obvious advantages that brings favorable conditions for economic development. Transportation, location advantages, the advantages of agricultural development, energy advantages materials, and labor market advantage and personnel, etc., but its rural financial development lags far behind the growth of the rural economy, which is not only the issue of China’s rural financial system factors, but also with the construction of China’s imperfections form of rural financial institutions and organization. Many domestic scholars and experts did lots of studies on the relationship between growth and economic development of rural finance, they used financial theory and the theory of the development of economic growth by using the empirical analysis theory. They concluded that China’s economic development in the decade, the rise in the ratio of rural finance was quickly, and with the rapid expansion of the financial scale, which mainly due to the Chinese government implemented a series of economic system reform in rural areas, it aims to promote the rapid growth of the rural economy that accompanied with the rapid growth of the demand for financial capital.This article collected the statistical data of Hubei Provincial Statistical Yearbook from the year of2000to2012, choosing per capita income in rural areas of Hubei Province, farmers deposits, rural credit and rural fixed assets investment as the four indicators. In the view of the empirical aspect, we made a research of the relationship between the growth of Hubei rural finance and rural economy. Firstly, introduced economic and financial research directions and research priorities of the domestic and rural, then take Hubei Province as an example, introduced the current situation of rural financial development and economic growth in rural Hubei Province. Secondly, we selected the dates according to the selected time series data, by using Eviews software for data measurement logarithmic and differential treatment. Lastly making a further discussion between the relationship of the rural finance and rural economy, and come to an conclusion that the supply of rural finance and the increasement of Hubei Province rural fixed asset investment has played an active role in promoting the development of the rural economy. In addition, according the actual situation of Hubei rural finance and rural economic development, and the overseas experiment, the article also put forward some proposals to improve rural financial system.