The Influence Of The Rural Finance Development On The Rural Residents’ Consumption Level And Structure

Insisted on the coordinated development, the gap of consumption level and structure between the rural and cities is not only the short board, but also a great potential to expand domestic demand, thus how to improve rural consumption level and optimization structure become an important problem. from the perspective of the rural financial development, through theoretical and empirical analysis, which is advantageous for the rural financial institutions to be able to see more comprehensive financial environment, realize the directly or indirectly influence of rural financial development on rural consumption level and structure, to provide the reference for the rural financial institutions to make the right strategic decisions.Based on the classic theory of rural financial development and consumption, the rural financial institutions on the one hand by providing consumer credit directly affect the level of consumption in the countryside, on the other hand, by influencing the consumption ability and intention affect consumer demand, indirectly effect the rural consumption level; At the same time, Rural financial institutions on the one hand by increasing disposable income reduce the engel’s coefficient to influence the consumption structure of the current period, on the other hand by providing financial support ease liquidity constraints and lower expectations saver pressure to inter-temporal consumption.Based on the VAR model, selecting the size of the deposit and lend and the development of agricultural insurance to test the development of rural finance, introducting three control variable:net income rural residents’ price index, and consumer environment. Through empirical test, the development of rural lending and deposit scale and efficiency has a positive role in promoting rural consumption level and structure, the scale of development of agricultural insurance has a positive role in promoting rural consumption level, but the agricultural insurance development of our country is still in its infancy, and failed to guarantee good play to reduce uncertainty expected, to some extent, restricted the rural consumption structure upgrade.Considering the current consumption of the rural financial development and the status, put forward to increase channels, optimize the financial service and the policy suggestions to improve liquidity constraints, to further promote and raising the level of rural consumption structure optimization, improve farmers’ happiness index.