Study On How Rural Finance Promote The Economic Growth In Jiangxi Province

Always, one priority for our government is how to effectively promote agricultural development, thereby boosting farmers’ income and maintaining stability in rural areas. Especially in recent years, economic growth becomes increasingly dependent on financial support in the context of enormous national reform and robust capital markets. Primary industry-agriculture, as the cornerstone of the development of the national economy, has always been the focus of attention. But, rural finance development, an important part of rural development, has been facing a lot of difficult issues during its development process as to become the weakest link of financial development.Although the country has made great efforts to stimulate consumption in rural areas, the gap between urban and rural consumption level is still to be bridged; although farmers’ incomes have been significantly improved, the improvement rate is still low compared to that of urban citizens; the agricultural industry has the lowest ratio in terms of input-and-output efficiency, well below the industry and the tertiary industry; either the agricultural yield of single crops or total yield is relatively unstable due to the fact that agriculture is vulnerable to risks from both the market and nature. With gradual industrialization and urbanization, the domestic agricultural land and per capita arable land area continued to shrink, approaching the bottom line specified. Although government has increased fiscal spending on the rural infrastructure, infrastructure in many places is still difficult to meet the demand of the rapid development of rural productivity because of the rural weak infrastructure.Rural finance development is critical to the development of rural economy, especially so in the new situation, serving as a springboard of rural economic growth. Investment and financing efficiency depends mainly on the degree of development of rural finance, and healthy financial environment is critical for mutual transformation between investment and financing, and can significantly increase the growth rate in rural economy.Growth of the rural economy and rural finance are inextricably linked, but, because of weak rural financial institutions in Jiangxi Province, rural capital flooding into city, poor sustainable development capability of financial institutions, weak transfer mechanisms and inability to avert risk and so on, Jiangxi’s rural finance not only prevented economic development, rather than promote economic development of the province. This paper provide in-depth analysis of the potential factors limiting the rural finance development by citing relevant finance development theories and providing detailed analysis of supply and demand in rural finance market. This study aims for the future rural financial reform and providing constructive suggestions for optimizing the financial system policy environment. The rural finance can significantly promote rural economic development, and achieve the ultimate goal of sustainable development by increasing agricultural output.While there has been great improvement in the agricultural economy of Jiangxi Province in recent years, the rural finance development cannot keep pace with that of agricultural economy. With the increasingly fast development of rural finance system, it will greatly benefit the overall rural development. In order to solve the problems mentioned above, this article will take detailed analysis-a qualitative analysis, quantitative analysis, comparative analysis, and a comprehensive analysis-of rural finance development situation and supply and demand in rural finance market. Based on those analyses, this article will draw some important conclusions to provide some reference for promoting rural economic growth and effectively promoting the rapid development of rural finance. The paper consists of six chapters, and the themes of each chapter are listed as follows:Chapter 1:Introduction. This chapter deals with a research background, purpose and significance, research status, contents and methods, the main innovations and shortcomings, which set the stage for the follow-up of this paper.Chapter 2:Rural financial development theory. This chapter studies theoretical analysis, and explore the relationship between rural financial development and rural economic growth through these theories and models.Chapter 3:Empirical analysis of rural financial development and rural economic growth in Jiangxi Province. This chapter elaborates on the development of Jiangxi Rural financial situation, through econometric model, empirical analysis of rural financial development on the promotion of rural economic growth.Chapter 4:the existing problems of rural financial development in Jiangxi Province. This chapter presents the problems through the detailed analysis of finance development situation in Jiangxi Province.Chapter 5:Suggestions for speeding up the development of rural finance in Jiangxi Province. This chapter is aimed primarily at solving problems presented in chapter four.Chapter 6:views on the future development discussed in the paper.