Analysis On The Impact Of Savings - Investment Conversion Rate On Economic Growth Based On Extended Solo Model

The efficiency of saving-investment transformation is one of the important indicators to measure the efficiency of rural finance. With the strong support to help and develop rural finance from central government, it is significant that how to encourage farmers to transform their savings to investment and how to promote the efficiency of saving-investment transformation to spur rural finance under the background of a high saving rate in Gansu Province. This paper chooses the important indicator, efficiency of saving-investment transformation, of finance efficiency as research object. Based on the research on relationship and pathway of saving-investment transformation in Gansu Province, I discuss the relation between the efficiency of saving-investment transformation and economic growth. On this account, I try to find the key point that prevents the increase of efficiency of saving-investment transformation. Furthermore, I make some suggestions to boost the efficiency, which can make Gansu Province benefit from the financial revolution and develop rapidly.This article first defined the concepts and introduced the development and existing problem of rural finance of Gansu Province. Then the conversion efficiency of saving to investment to join the traditional solow model, using the extension of the solow model discusses the conversion efficiency of saving to investment on economic growth is how to play a role, the result of analysis shows the improve the efficiency of conversion from saving to investment to economic growth is a positive role in promoting. After, through the relevant statistics, the conversion efficiency of saving to investment as a mechanism factor, was analyzed by using the regression on the conversion efficiency of saving to investment mechanism of different degree of contribution to the growth rate of total factor, indirect proportion of its effect on rural economic growth.Results show that the conversion efficiency of saving to investment is one of the important factors influencing the growth rate of total factor. It increase a percentage, total factor growth rate increased by 0.2%. On the basis of the size of remuneration, promoting rural economic growth around 0.2%. On the basis of the study, we hope to improve the conversion efficiency of saving to investment, therefore, then discusses the restriction factors of the conversion efficiency of saving to investment. According to the restrictive factors, put forward policy recommendations of constructing a high efficiency of convening saving into investment.