The Empirical Study Of Relationship Between Rural Financial System Changes And Economic Development

The research on the relationship between financial development and economic growth is a classic proposition in economics, there is a link to a non-negligible between rural financial development and rural economic growth, changes in the rural financial system will encourage the financial development of certain changes in different rural areas under the financial system, the relationship between rural financial development and rural economic development is different. The backward rural financial system which does not match with economic development will restrict the further development of the rural economy, so the reform for the existing rural financial system is necessary. The reform can make the rural financial development and rural economy development promote each other in a way of much more coordination match.The article builds indicator systems with rural monetization rate, rural financial interrelation ratio to measure the level of China’s rural financial development and agricultural output, food production, the proportion of primary industry workforce, rural per capita net income to measure the level of the index system of China’s rural economic development and selects financial data and economic data of the period 1979-2012 in rural area, then uses these indicator systems and data to analyze rural economic development and economic development at different rural financial system and study the relationship between rural financial development and rural economic development at different times and between different rural financial system by building the rural financial system and rural economic system coupling coordination model. The study finds that with the progress of society and rural economic system changes, both rural financial and rural economic develop, at the same time, the relationship between the rural financial development and the rural economic development changes from extreme imbalance to barely coordination, it also finds that the rural financial development lags behind the development of the rural economy development. Taking these findings as a starting point and combining the actual situation of China’s rural areas, the article puts forward some suggestions and countermeasures to speed up China’s rural financial reform from these aspects, for example, promoting rural credit system construction, improving rural credit guarantee system, improving rural financial supervision, introducing new financial institutions and conducting more agriculture finance business.