Research On The Impact Of Rural Financial Industry On Agricultural Economic Growth

With the need for new rural construction and agricultural production restructuring and development,China began the reform on agricultural production and the rural financial system reform.It appears that the rural financial sector through continuous adjustment and transformation gradually formed a business,policy,cooperative coexistence of rural financial system.Because of China's rural financial sector's late start,the existing financial system cannot meet the needs of current agricultural restructuring and development.Especially in Shanxi Province,rural financial services have not significantly improved.As the infrastructure is lagging behind,financial instrument are not abundant,formal,non-formal financial institutions are coexist.These factors hinder the development of agricultural economy.Beginning of the article.I describe the writing background,the significance and literature review in China and abroad,elaborated on the status of agricultural economic development theory and the theory of rural financial.Thereafter I introduce the theory of rural financial development influence the agricultural economic growth.And make a descriptive analysis of the current development situation in Shanxi agricultural economy and rural financial sector development,then analyze the impact mechanism between them,with the theoretical basis,I calculate the Financial Interrelations Ratio,the rate of rural residents' savings capacity and other major indicators of economic growth data and measure out the indicators analyzed descriptively.In the theoretical analysis and indicators,data preparatory work is completed,the paper use eviews software make var regression analysis on agricultural economic growth and the impact of various factors.At the first,test its stability in a post-order difference of each index stabilized,then test the existence of long-term equilibrium relationship between the variables through cointegrationanalysis,and then Granger causality test,test key financial variables lagged impact of agriculture on economic growth,and finally by the impulse response function to know the main variables that affect the time changes in the role and the cumulative effects of the passage through the analysis.this paper draws: Shanxi's rural financial sector in its infancy,rural finance policy in an adjustment phase,the development of rural financial sector because of the imperfections of the financial system and financial policies related to the current agricultural economy,but the role of growth is not obvious.the relevant financial rate of long-run equilibrium positive effect for the current agricultural economic development in Shanxi Province,It also has cumulative effect.while the blind promotion of agricultural credit line is not conducive to long-term balanced development of the agricultural economy,in addition to the level of the agricultural economy upgrade help increase rural residents' savings capacity to provide direct credit to finance agricultural production,rural finance sector help form a sound financial ecosystem.After empirical analysis before,According to the conclusion of this paper,I make relevant policy recommendations in the field of rural financial legislation,financial system,financial institutions' set up,financial instruments,it help to promote rural development and reform of the financial sector,and thus to better play its intermediary role in agricultural production.