Research On The Impact Of Rural Finance In Tianjin On Residents' Consumption

Investment and export acting as two of the three driving forces which play important role in economic growth under the background of 'New Normal'economy become weaker and weaker,while the contribution of consumption which acts as stabilizer is rising up sharply.The population in China rural area is huge,while its consumption share is small.Thus,it is urgent to explore consumption market in rural area while there is no profitable room in urban area.Meanwhile,the development of finance plays an important role in influencing household consumption.With the acceleration of integration of Beijing-Tianjin-Hebei regions,the consumption level of rural residents in Tianjin has been greatly improved;accordingly,the structure of consumption expenditure has also changed.In the viewpoint of finance,the consumption of rural residents in Tianjin has great practical significance in activating rural financial market,improving rural residents' income,stimulating rural consumption and promoting the economic growth of Tianjin.This paper reviews related researches and literature about rural finance and consumption studied by domestic and foreign researchers firsty,then,combs the rural financial theory and consumption theory,and expounds the contribution of rural residents' consumption to economic growth.After that,this paper analyzes the influencing path of rural financial on the consumption,finallyv this paper thinks that rural finance can support the consumption of rural residents by three ways including raising rural residents' income,changing rural residents' conservative consumption ideology and improving the consumption environment.Based on the theoretical analysis,this paper analyzes the current situation of the financial development in Tianjin rural areas from three aspects:financial scale,financial efficiency and financial structure,and then studies its consumption situation from three aspects:total consumption,consumption level and consumption structure.Selecting the data from 1984 to 2014 and then establishing VAR model,this paper explores the impact of Tianjin rural finance on the consumption level and consumption structure from the aspects of financial scale and financial efficiency.The analysis of present situation and empirical results show that the consumption enthusiasm of rural residents in Tianjin is high,and the rural consumption market is rising,containing huge potential energy.At the same time,the level of financial development in rural areas needs to be improved;the financial scale is lagging behind:the financial structure has problems,such as:the lack of financial support of agriculture,the lack of financial efficiency and the weak impact on the consumption.Thus,the current financial level in Tianjin rural area cannot match with the rising demand of consumers.In this situation,the paper puts forward policy recommendations from the following four aspects,which are:how to promote the income of rural residents,how to develop consumer credit,how to optimize credit management system and how to improve consumer environment.