Positive Research On The Relationships Between Rural Financial Innovation And Rural Economic Growth Of Hebei Province

Finance as the core of modern economic development, improve and perfect the financial system is essential for economic development. The rapid development of urban economy compared to rural areas. Financial support plays a larger role. However, the underdevelopment of the rural financial system can not meet the development of rural economy, which restricts the construction of rural urbanization process. Since the philosophy behind rural financial institutions, market-oriented process is slow, resulting in the emergence of farmers loans difficult circumstances and a certain degree of mismatch of resources. Financial innovation, as a factor of production, plays an important role in the play on the other elements of the configuration of resources and functions. Financial innovation can be a variety of financial resources and elements within the region to be re-combination, creating a more efficient allocation of financial assets ways to adapt to the economic development needs.Hebei Province is one of China’s major agricultural province, from the current situation of its financial innovation is not strong, rural urbanization level is not high. In recent years, Hebei Province, conscientiously implement the central policies on supporting the "three rural" 。Especially since 2008, Hebei Province, was listed as the new pilot reform of rural financial institutions in the province, its finance is developing rapidly. At the same time the development of the rural economy and urbanization in Hebei Province has made great progress. However, there are interaction between the rural financial innovation in Hebei Province and its rural economic development or not, and how to interact. This article will delve into the relationship between the Rural Financial Innovation and rural economic development in Hebei Province.Firstly, the paper summarizes the theory and literature related to financial innovation and economic development in the summary of the literature on the basis of domestic and foreign, to tease out the research context of this article. Second, combining the state and Hebei Province finance-related yearbooks Hebei Province Rural Finance estimates Hebei Province Rural Finance related data. Once again, combined with the existing literatures, create the innovative index system of rural finance. Through unit root and cointegration test, to establish a structured model VAR model for the interaction between the rural financial innovation and economic development in rural areas of Hebei Province between empirical test. The empirical results show: First, there are the long-term equilibrium relationship Rural Financial Innovation and Rural Economic Development in Hebei Province. Second, the level of innovation in Hebei Province promoted the development of the rural economy, the rural financial innovation efficiency index is the most affecting rural economic development. Third, rural economic development has great impact on the level of innovation in Hebei Province Rural Finance. Finally, we summarize the results of the fourth and fifth chapters, and the results of this study were a complete overview and make recommendations on the future of Hebei Province have targeted rural economic development and rural financial innovation.In this paper, on the basis of domestic and foreign literature, I make innovation in research perspective, research indicators and research methods in three aspects. First, from the research point of view, this article from the perspective of a new study- provincial level, through the Rural Financial Innovation in Hebei Province to measure the level of research conducted in Hebei Province Rural Financial Innovation situation on the financial resources to re-configuration. Second, from the perspective of research indicators, previous studies mostly based on literature research the national level, some based on provincial level only research level of financial development. This paper established a suitable measure of provincial level rural financial innovation indicators such research more convincing. Third, research methods, the article related mathematical derivation based on the CD production function on the VAR model.