An Empirical Study On Rural Financial Efficiency In Shandong Province

Agriculture is the first industry of our country, and it is the foundation of national economy development. Before reform and opening up, China will concentrate most resources to the process of industrialization which seriously hampered on this backward rural economy. Since agriculture is the foundation of the national economy, therefore, lagging development of the rural economy to some extent hindered the development of national economy, building strong rural economy, increase farmers' income has become the top priority of the current economic development. Financial development is the core of modern economic development is inseparable from financial support in building and developing the rural economy, it can provide financial support and protection for agriculture progress and development of rural economy, rural finance and the level of efficiency become critical.With the deepening reform and opening up, Shandong Province increasing emphasis on increasing the rural financial market development strength and depth, the gradual relaxation of the rural financial market regulation and barriers to entry, thus making a number of new financial organizations such as village banks rural credit union funds and loan companies began to build and expand development in rural areas. Modern rural financial development not only requires a lot of capital investment, including increasing levels of financial efficiency, while the latter role in promoting the rural economy larger than the former. Therefore, in the Rural economic development, the level of efficiency of rural finance has gradually become a key factor in rural economy. Since the development of Shandong Province rural economy cycle is longer, coupled with financial institutions for the purpose of profit, resulting in the efficiency of current supply and rural finance rural financial resources cannot be better to promote rural economic development, is the emergence of rural fund "non-agricultural of the phenomenon is outstanding, making an already tense capital is stretched rural economy, hindering the development of the rural economy. Although government in the importance of the three rural issues per year, but after our rural areas and farmers base is relatively large, with a meager financial resources, development of rural economy in urgent need of financial support.Rural financial efficiency level of two-way role of rural economic growth to gradually by all sectors of the concern of scholars and researchers. On the basis of the theory of financial development for the rural financial efficiency of the main problems in Shandong province using factor analysis, correlation analysis and regression analysis of the level and efficiency of rural financial factors in Shandong Province were analyzed, and combined with the results of the analysis of combined factors, It proposed to improve the efficiency of rural finance in Shandong province valid recommendation.