The Research On China’s Underdeveloped Areas Of Rural Financial Repression

Since reforming and opening, Chinese economy progress gained the huge successthat attract worldwide attention, the people’s living standard has been greatlyimproved.But in the vast rural areas, especially in the western underdeveloped ruralareas, economic development speed is far behind that of urban areas, urban and ruralresidents income difference is pulled ceaselessly big, urban and rural dualisticeconomy structure is obviously.The element that restricts rural economics developmentis many sided, and the rural financial repression problem is to cause rural regioneconomy grows slow key factors. Therefore, in-depth analysis of financial repressionproblems, put forward to solve the financial repression method, to solve Issues ofagriculture, farmer and rural area, do away with urban and rural dualistic economystructure, the full realization of a well-off society to have important theory and practicemeaning.This paper based on the traditional financial theory and the development of therural financial theory development are summarized and reviewed.And then through theselection of Sichuan Province Bazhong area as an example, using the FinancialInterrelations Ratio of Bazhong area rural financial deepening degree judgement, comein Bazhong rural financial repression of very serious conclusions, based on the theoryof financial repression and the financial deepening theory knowledge, usingco-integration test and Granger Causality Test, Bazhong regional financial deepeningin economic development a one-way causal relationship exists between, but not viceversa Conclusion.Next, the first set out from demand angle, the analysis of Bazhong area farmersand rural small and medium-sized enterprises financial depression status, found thatfarmers and rural small and medium-sized enterprises to the financial resources havestrong demand, but because of the high risk of agriculture itself, the lack of effectivemortgage and other objective factors, limiting the farmers’ financial needs. From the supply perspective, analyzes the rural financial supply factors, and the formal financialorganization and informal financial organizations to promote rural financial deepeningmeasures carried out in-depth analysis and evaluation.Finally, in view of rural financial deepening problems in the process, put forwardto deepen the reform of the various measures: one is to play the supporting role of ruralformal financial institution, two is to standardize the development of informal financein rural areas, three is establishing and perfecting rural financial service system,thereby promoting the development of rural economy.