The Analysis Of The Relations Between The Rural Financial Development And Economic Growth

Over the past twenty years, the expansion of China’s economic development level and dramatically improving people’s quality of life, but our country is still a developing country and economy is not developed. Comparing with the economic development in other countries around the world we still has a large gap and many problems slow to be solved such as development of township enterprises, the widening gap between the rich and poor, urban and rural areas "SAN nong" problem. Our country is a traditional agricultural country, and rural economic development affects the overall economy in our country, so in order to make our economy more prosperous, it must strive to promote rural economic development process. Only to make the better perfect rural industrial structure, increase rural employment opportunities and improve the level of farmers’ income, rural economy to sustainable development and prosperity, and the need of the rural financial support, so can our country rural financial develop greater.This article chooses the rural finance and rural economy in our country as the research object and the theory of the rural financial development and economic growth theory as the theoretical basis. It selects 1985-2011 dates of our country rural GDP and rural financial development scale, structure, efficiency of data as sample and uses the method of empirical analysis to research the correlation of the rural financial development and economic growth in China,finally it concludes China’s rural financial development scale have an effect on rural economic growth.The introduction section of this article mainly introduces the research background, practical and theoretical significance, thinking and context as well as the innovations and defects; Literature part reviews the domestic and foreign scholars’ research on the relations between the rural financial development and economic growth; Next, this paper briefly introduces the rural financial development and economic growth theory. The rural financial development theory mainly introduces growth theory model, Harold to Rome on the new classical economic model, endogenous economic growth model. Then it introduces the present situation of the rural financial development and economic growth in China, mainly from the current situation of the development of rural financial agricultural bank, agricultural development Banks, rural credit cooperatives, postal savings Banks, rural Banks and private financial these six aspects to introduce, rural economic growth mainly from China’s rural economic development level, the three major industrial workers, the present situation, the rural fixed asset investment, urban and rural residents income level and consumption level, the introduction these five aspects, and points out the existing problems in the development of rural finance in China, such as the insufficient supply of rural financial institutions, most of the rural capital outflow, the imperfect rural financial system, bank lending and farmers loans "dilemma", single and serious lack of rural financial services, rural financial development lack of legal norms. Empirical analysis process chooses 1985-2011 GDP datas to reflect the rural economic growth in rural areas in China, the rural financial development scale, structure, efficiency index to reflect the rural financial development of our country and uses the ADF test to test sequence, and the inspection finds that the original sequence is not smooth. After the first order difference sequence and cointegration test, the original sequence finds a collaborators between them. Then it conducts Granger causality test and draw a conclusion. Finally it puts forward policy Suggestions, for example perfecting the rural financial system, expanding the scale of development, improving the rural financial products of a single, positive on the varieties of business innovation, building open and effective financial order, regulating the folk financial development, improving the external environment of the rural financial development to realize sustainable development.