The Correlation Study On The Relationship Between Rural Financial Development And Rural Economic Growth In Sichuan Province

Rural Financial Development and Rural Economic Growth correlation study has been one of hot topics in the theorists and practitioners. Scholars has studied this problem for half a century, but there is still no conclusion on the relations between rural financial development and rural economic. Undoubtedly, rural finance development and rural economic growth is a controversial topic. Ten consecutive years from2003-2014, the specific content of the central document are focused on China’s "three rural" issue. This shows that the "three rural" issue has become one of the important factors affecting the growth of China’s rural economy. It depends on the realization of China’s economic transformation and rural economic growth to solve this problem.Sichuan Province is one of China’s major agricultural provinces, rural economic development significant impact on the economic development of our national economy development. Agriculture weakness issue remains. That is undoubtedly hindered the growth of the rural economy in Sichuan Province. Meanwhile, finance is the core of modern economy, its development can improve the efficiency of resource allocation, optimize capital allocation structure, financial development can promote the growth of a modern economy. Rural economic growth apparently cannot without the support of the development of rural finance. In China, the relevant literature studies about Rural Financial Development and Economic Growth-related are also very much. However, studies for specific areas are very scarce. Therefore, this paper selected Sichuan province as the research object, this research has important theoretical and practical significance.Firstly, we had a literature review the study of correlation between economic growth and financial development at home and abroad. Then we analyzed the theory of economic growth, rural financial development theory and the theory of financial support for agriculture. Based on the above theory, the paper selected scale rural financial development and financial structure of rural development, the development of rural financial efficiency and Fiscal Expenditure four indicators to measure economic growth. Construct empirical analysis model VAR. We did empirical analysis on the relationship between financial development and rural Sichuan Province in rural economic growth.