An Analysis On Influencing Factors Of Rural Financial Differences Between Four Big Economic Regions In China

In order to pursue the rapid development of the national economy, China has implemented a series of non-balanced regional development strategies that focus on the economic growth since China’s Reforming and Opening. In 1978, the policy of "Let some people and some regions get rich first" led to the priority of the development in the East. In the initial stage of the industrialization, both the prior developmental cities and industrial policies made it possible to appeal related resources that moving to those cities. In 1999,for the purpose of narrowing the gap between the development of East and West, China came up with the idea of “The Western Development Drive”. Additionally, during the following year, 2003 and 2004, the proposals, "Northeast Area Revitalization Plan" and "Rise of Central China Plan" came to stage. Those policies in different periods that in varied areas, made a contribution to the unbalanced development among many areas in our country, bringing in “the urban-rural dual structure”. In the 21 st century, it is the fact that the rising levels of urban development are relatively stable, and the economic power of the eastern costal is stronger than other regions significantly. At the same time, more attentions are paid on "Three Dimensional Rural Issues", which is getting severe in these days. As the core solution of the “Three Dimensional Rural Issues”, rural finance plays a vital role in promoting the booming of the rural economy. It is a tough work to deal with the problem of how to develop rural finance under uneven regional differences and the phenomenon of "The urban-rural dual structure". This article will research regional differences and factors that in influence the rural finance.Based on cross-section data of Rural finance of 30 provinces( except Tibet,Taiwan,Hong Kong, Macao) in China from 2005 to 2011, using the method of correlation analysis and principal component analysis, we filtered 12 explanatory variables and 4 dummy variables and built a multiple regression model to measure the influencing factors on regional differences of rural finance. The result shows that rural finance development in the eastern is distinctly better than the other three. Also, the level of investment in rural economy,the status of development of rural financial institutions,and construction of rural infrastructure, especially roads for posts and telecommunications, play a significant and positive role in promoting the development of rural finance. Moreover, the result has the practical meanings to narrow the gap of rural finance among different areas, to promote thecoordinated development of rural economy, which play the positive effects on the construction of urban and rural integration.