The Influence Mechanism And Empirical Evidence Of The Rural Finance To The Dual Economic Transformation

Dual economic structure has become main obstacles which restricts the coordinated development of urban and rural economy. Rural finance which makes a significant part of the financial system has a great significance of solving the "san nong" problem which has restricted China’s economic development for a long time and promoting the transformation of dual economic. Many scholars at home and abroad has done a lot to study the relationship between financial development and the dual economic transformation and made a lot of research results, but they have not paid enough attention on the influence of the rural financial development to promot the transformation of dual economic. At present our country is at a critical period of deepening the reform of financial system and the dual economic transformation. Combining with China’s actual situation in the transformation of dual economy and the rural financial development, further study the role of rural finance to the dual economy transformation, will have important theoretical value and practical significance to our transformation and upgrading of ecnomic structure.First, this paper gives a comprehensive overview about rural financial development and the dual economic transfermation and gives an objective evaluation. Second, defining the concept of rural finance and the dual economic transformation. Basing on the statement of basic contents of Lewis-Ranis-Fei model and Todaro model, it makes a clear know about the core issue of dual economic transformation is agricultural surplus labor transfer. The academia thinks that the city’s industrial development and the coordinated development of urban and rural areas can promote the transformation of dual economic, Combing the practice of some typical countries points out that we need a virtuous circle of agricultural and non- agricultural industries and the coordinated development of urban and rural areas can promote rural economic transformation. On the one hand, rural financial development can provide financial support for the rural non-agricultural industry development, on the other hand, rural financial development can provide financial support for agriculture development to improve agricultural labor productivity and expand non-agriculture shift to achieve dual economic transformation; Rural finance development can transform traditional agriculture and provide financial services for township enterprises and professional farmers to realize agriculture industrialization and agricultural modernization gradually, eventually realizing the dual economic transformation; Rural finance can promote the dual economic transformation by improving rural production and living conditions. In this paper, building a mathematical model of dual economic transformation and rural financial development including rural financial and other factors by inheriting previous research achievements, and explaining the relations between dual economic transformation and the development of rural financial by mathematical model from the perspective of statistics.Then, this thesis makes a empirical analysis in the process of studying the rural financial development to the transformation of dual economic influence. First, setting indicators to measure the level of the rural financial development and dual economic transformation. Building the rural financial development to the transformation of dual economic model through building the VAR model, and the result shows that the rural financial development does have an impact of the transformation of dual economic, but the effect is different. Through reform the mechanism of the rural financial system, increase the rural financial development scale, reduce labor productivity difference between urban departments and rural between departments, accelerate the realization of dual economic transformation; The development of township enterprises will acts as a stimulus to the transformation of dual economic structure In the long term.But at present, the country has not given enough support to the rural financial development and has not enough rural financial legislation, rural credit cooperatives has experienced reform for several times, but many troubles still exist in the aspects of management system and property rights, the lack of suitable for financial innovation of the rural development, agriculture has week characteristics and the farmers has weak consciousness on credit consideration.All of these reasons make China rural financial development face a series of problems, such as it is not exist that the service system of rural financial service is perfect, the rural capital outflow phenomenon is serious, fork finance is widespread, but it is no legal status and the effective supply of agricultural insurance is insufficient. By discussing the rural financial development and dual economic transformation of typical countries which include South Korea, Japan and India, pointing out that regardless of national economic development level, they all build relatively complete rural financial system, having related legal laws and regulations and developing adaptable rural cooperative finance, this rural financial development system support dual economic transformation well. Combing the actual situation of dual economc transformation in China and draw lessons from foreign countries in them process of achieving dual economic transformation and rural financial development, and putting forward the corresponding countermeasures, including gorvenment should enhangce the dimension of rural financial support, increase the rural financial legislation, promote the rural credit cooperatives reform, promote the rural financial system innovation and construct a rural capital support system to guide capital flows to the rural in order to promote dual economic transformation through the rural financia.