Empirical Research In The Impact Of Agricultural Loans On Agricultural Economic Growth In Heilongjiang Province

As one of the biggest agricultural province,Heilongjiang Province was facing with structural reform and development during the 13 th Five-Year Plan.Agricultural production and economy needed sustained and stable development,which could not leave with agricultural loan as their necessary financial support and protection.As comprehensive analysis on the domestic and foreign agricultural loans,the foreign scholars used one country as the research object,and analyzed the actual situation of economic development in rural areas,which were focusing on analysis for the causes of the low level from agricultural credit.They were more macro.The domestic scholars on the agricultural loan were more detail research,and the empirical analysis of research methods were rich and diverse.However,research results on the nationwide were similar and studies on specific provinces were less.The regional differences of the impacts on agricultural loans to agricultural economic growth were more obvious,so the study of provinces and regions should be based on the actual level of agricultural economic development and rural financial policies.This paper took the Heilongjiang Province as the main research object basing on that it was the important agricultural province in China.Agricultural development had a great influence on the local agricultural economy.Study on the effect of agricultural loans on agricultural economic development in Heilongjiang province had a typical reference to other agricultural provinces.In this study,firstly it defined the concepts of agricultural loans and agricultural economic growth which were based on theories,and then reflected the overall status of Heilongjiang Province from the aspects of agriculture loan`s scale,efficiency,as well as the agricultural economic development.Secondly,it clearly defined the transmission mechanism from the agricultural loan to agricultural economy.Basing on the extensive reading of relevant study,it established comprehensive and objective index variables to represent the development of agricultural loans in Heilongjiang Province.Then it established a simple and effective evaluation index system.Thirdly,after doing standardized data processing,it used the principal component analysis and factor extraction in order to avoid the data correlations as well as reduce dimensionality.It extracted common factors which were named as conversion efficiency factor and depth scale factor.After that,it did the unit root test and Johansen integration analysis to the two common factors and agricultural GDP.To explore the relationship among the three variables the study uses the VAR and Granger causality test.It found that there was a one-way causality between two variables.The empirical results showed that both conversion efficiency factor and depth scale factor of agricultural loan had a positive effect on promoting the agricultural economy.However,the conversion efficiency factor led a more significant role in agricultural economic development.Combining with the empirical analysis results and the specific situation of agricultural economic development in Heilongjiang province,it needed to innovate rural financial products and services,guide rural capital flowing to countryside,innovate the agricultural loan's service modes,complete service ways from agricultural loan to agricultural production,improve the system of agricultural insurance,consummate the agricultural credit guarantee system.