Research On Shandong Rural Economic Growth And Rural Financial Development

The great development of agriculture and rural economy and the construction ofnew socialist rural areas are the basic policies and programme of the Party’s ruralwork in the new era, which were proposed at the the Fifth Plenary Session of the16thCentral Committee. They are also the significant historic tasks that have beenincluded in the11thfive-year plan. China’s rural financial reform should start with thethorough understanding of rural financial development on the basis of a set of fairlycomplete indicator system that is provided by modern financial development theory.As China’s major agricultural province, Shandong is faced with many problems inrural financial reform. Therefore, it is very important to have an empirical analysis ofShandong’s rural finance and economic growth.The thesis firstly has a brief review of the function mechanism of rural financeand economic growth, and discusses HARROD一DOMAR theory of economicgrowth, the new classical theory of economic growth, and the endogenous economicgrowth theory. It mainly explores the relationship between rural finance and economicgrowth from both macro and micro aspects.Chapter3discusses the status quo of rural financial development in Shandong. Itmainly focuses on the relative size of financial instruments in our province, thesituation of financial institutions, financial market structure and the functions offinancial agencies. Finally it evaluates the situation of financial development in ourprovince, and summurizes several features of the financial development situation inShandong.Chapter4emphatically makes the empirical analysis of the influence of ruralfinance on the relationship between rural economies. It discusses the relationshipbetween rural finance and farmer income frowth, urban-rural income gap, regionaleconomic growth respectively, and makes an empirical analysis on the basis of somemathematical models, such as VAR model. The analysis indicates there exists along-term stable equilibrium relationship between rural finance and rural economy,but they are negatively related. This reveals that rural finance does not really serve the rural development.Based on the problems discovered in empirical analysis, Chapter5mainly putsforward some policies and suggestions which may be helpful for rural financialdevelopment to facilitate the rural economic growth.