The Regional Effect Research Of Monetary Policy On Agricultural Economy Development In China

Geographical span of China being too large, the differences of resource endowment and economy in various provinces and regions are quite large, leading to unbalance regional economic development. Since the reform and opening up, the differences between coastal regions and mainland regions, east regions and middle-west regions, as well as urban areas and rural areas have been increasingly expanded, of which the phenomenon of incongruous economic development arises out. However, for quite a long time, China implements unified national monetary policy which neglects the imbalance regional economic development. Therefore, a lot of scholars and experts conducted a series of researches on the effectiveness of the monetary policy, the regional difference of monetary policy effect as well as the industrial monetary policy differences and carried out empirical analysis from each perspective to explain causes of such differences.This thesis uses relevant research results from related experts and scholars for reference, aiming at systematically studying the process of the implementation of monetary policy influencing the generation of regional difference in agricultural economy. In the thesis, China is divided into three areas—east, middle and west. Being established in the entire agriculture and taking classic provinces in agricultural areas as research samples, the thesis adopts normative analysis method and empirical analysis method to analyze the monetary policy’s agricultural area effect in China. The thesis is composed of six parts. The first part illustrates the subject background and significance. Based on the summary of domestic and foreign literature reviews, the first part puts forward the research idea and research category of the thesis and makes clear the innovation points and weaknesses of the thesis. In the second part, from the theoretical bases of conduction mechanism of monetary policy and monetary policy effect difference, this part discusses the important role of relevant basic theories in this thesis. The third part expounds the operation situation of China’s monetary policy in the researched period(1995 to 2014) and makes a comprehensive description of the development status quo of China’s agricultural economy from the two aspects of regions and industries, as well as pointed out practical problems that China’s agricultural development is facing. In the fourth part, the vector auto regression model(VAR), impulse response function and variance decomposition analysis research methods are utilized to conduct an empirical analysis on the regional effect difference of monetary policy on agricultural economy. And then a summary and explanation of the empirical results are proposed. In the fifth part, corresponding conclusion to the fourth part, relevant polity suggestions and summaries are put forward, in the hope that consequent monetary control policies can better lessen the regional effect of monetary policy on agricultural economy and promote the harmonious development of regional rural economy. In the sixth part, the article makes generalization of summary.