The Development Of Informal Finance In Inner Mongolia Rural And Pastoral Areas To The Rural Economy Study On The Influence Of Growth

Agriculture is the basement of the economic and social development of the country in China. During different develop periods, inprove the income of peasants and promoting the growth of rural economy have been playing an important role in the development of national economy, which is the top priority of the agenda of governments at all levels. Since year 2004,Document No.1 of center government continuously focus on ‘agriculture, rural area and peasants' for 12 years, which provide an important opportunity for the development of rural society and rural economy. Accompany with the trend of deepen the rural reform. the shareholding system reform of State-owned commercial banks and the other Financial institutions pursue for profit, more and more financial capital withdraw from the rural area,which seriously blocked the growth of rural economics and become one of the important obstacle in the way to modernization of agriculture?This article reorganizes the current situation of the development of informal finance in both whole country and Inner Mongolia, take a summary of the styles and advantages of the informal finance compared to the formal finance, on the base of it, theoretical analysis was used to figure out the relationship between the development informal finance and the growth of agri-economy in rural area. Besides, the econometric model was established, use the relate variable and collect the useful data to find out the causality of inform finance, form finance and capital investment from the government. The result shows that in Inner Mongolia, capital investment come from the government and the inform finance can promote the growth of rural economy, but the form finance act as a obstacle in the increase of rural economics.Finally, we conclude that to promote the development of rural economics in Inner Mongolia, our government should invest more to the rural area, and the development of the form finance should be regulated, and as a important supplement, the legality of the inform finance should be guaranteed.