Research On China's Rural Financial Capacity And Outflow Problem

The Eighteenth National Congress of the CPC proposed the goal of finishing building a moderately prosperous society in all respects by 2020, with short time to bear heavy tasks.To achieve this goal, the most onerous tasks focus on rural areas, and the shortage of construction funds is also very urgent. However, China's vast rural areas are currently confronted with serious contradiction between capital supply and demand, which restricts the process of building a moderately prosperous society in all respects. Therefore, research on rural financial capacity and outflow problem is extremely important and pressing.Based on a large amount of data, this dissertation firstly analyzed the current situation of our country's rural capital demand, and calculated rural financial capacity by use of American economist Raymond·W·.Goldsmith's(in 1969) model ——“M=KG”. On the basis of the calculating results, this dissertation analyzed the real supporting ability from main rural financial institutions(e.g.: Agricultural Bank of China, Rural Credit Cooperatives, postal savings bank and other rural financial institutions) by using the descriptive statistics analysis method. Based on the analysis of Government Finance,financial, price and other net outflows channels, this dissertation analyzed the reasons of the rural capital outflow:(1) The fundamental reason is the dual economic system under the background of the " partition of urban and rural policy framework and institutional arrangements";(2)The key reason is that agricultural comparative advantage is weak, which causes the huge outflow of rural capital;(3)The direct reason is that the formal rural financial institutions operating by a commercialized way according to the "three principles", including the agricultural bank of "dropping down farm and marching into big cities and towns" and crying up wine and selling vinegar, rural credit cooperatives only using credit without cooperation, what's more, the postal savings bank acting as a main channel of rural capital "drain", and new rural financial institutions are small and powerless;(4)The important reason-- the new "price scissors" speed up the huge outflow of rural funds every year.Combined with China's national conditions, this dissertation analyzed the supply mode of three kinds of rural financial capital, i.e. market leading type, government leading type and mixed type by use of a comparative analysis and then put forward the alternative mode of capital supply in China's rural areas. Finally this dissertation put forward relevant countermeasures after summarizing several conclusions: the fundamental measure iseliminating dual economic and social structure between urban and rural areas; the key measures are improving agricultural comparative advantage, the direct measure is setting out clear tasks and objectives of supporting rural areas for rural financial institutions by law, and the important measure is eliminating the new "price scissors" between industrial and agricultural products. Finally, our country should speed up constructing rural financial supporting system which adapts to the social transition period.