Study On The Effect Of Rural Finance To Rural Economic Development In Shandong Province

With the efforts of more than 30 years,our country's economy has greatly improved.But compared with the urban economy,the rural economic development still exists many problems.Our country is an agricultural country,rural economy is the foundation of the national economy.So the development of rural economy is particularly important to our country.The development of rural economy need support of rural finance.If rural finance system is effective,it can promote rural economic development.Or it will hinder the rural economic development.Shandong province is a big agricultural province,agricultural GDP has been top.The research on the role of rural economic development in Shandong province rural finance has an important significance.So at first,this paper studies the development of rural finance and rural economy in Shandong province.Including situation and existing problems.On this basis,through the empirical test methods to verify the relationship between rural finance and rural economy.The empirical results show that Shandong province rural financial system still exist many problems.Finally according to the current situation analysis and empirical test results,the proposed reform of the rural financial countermeasures to promote the development of rural economy of shandong province.This paper is divided into five parts:The first part: Introduction.In this paper,the research backgroundand significance,the domestic and foreign literature review and research contents and methods of this article.The second part: The rural financial support to the theoretical basis of rural economic development.Introduces the rural economy,rural finance related theory.Including the theory of agriculture,rural areas and farmers,the rural financial theory and the relationship between rural financial development and rural economic growth mechanism analysis.The third part: The rural finance and rural economic development in Shandong province.Including Shandong province rural financial development course and status of the rural financial supply system in Shandong province.The status of the rural financial demand in Shandong province and shandong province rural economic development present situation.Status of the rural financial supply system in Shandong province are the focus.This part mainly includes the composition and problems of financial supply system.The fourth part: The Shandong province rural financial empirical analysis on the role of rural economic development.Collected through the official data,such as the statistical yearbook of Shandong province.Including shandong province agricultural product,agriculture loan balance,balance of agriculture and agricultural insurance premium income.Data analysis method based on VAR model,using ADF unit root test,Johansen cointegration test,verify whether there is a cointegrationrelationship between several variables,and error correction model is established.And finally using Granger causality tests verify development of rural economy and rural finance whether there is a causal relationship between several variables.The final conclusion is that the Shandong province rural financial support for the development of rural economy exists a lot of problems.The fifth part: Conclusions and countermeasures.According to the current situation analysis and the empirical results,this paper puts forward lots of countermeasures and Suggestions.Including how to expand the scope of agricultural development bank of China,consolidate the support agriculture status of rural credit cooperatives,improve the ability of commercial bank financial institutions to support agriculture,and strengthen the non-bank financial institutions to support agriculture.