An Empirical Study On The Economic Growth Effect Of Rural Financial Supply Side Reform

According to the 2016 Central economic leadership group meeting and the publication of the 2017 “No.1 Document”,the importance and urgency of the reform of agricultural supply side is emphasized by our government again.Under the new situation,the development of rural areas has made a great progress.The production conditions of agriculture are generally good,the mechanization degree is increasing.At the same time,it also faces enormous challenges,according to the State Council Development Research Center,China's current loan rate of peasants is only 60%.The rural financial supply system is facing with the lack of effective financial supply,the problem of the outflow of funds,the lack of collateral in the credit process,and the problems of low efficiency of various financial institutions in rural financial supply system so on,so under the new situation,it is necessary to make a reasonable adjustment and deployment of China's rural economic development.Based on the research on the rural financial supply side reform effect,this paper can not only find out the specific factors that affect the current lack of supply of rural finance,but it's also good for the construction of inclusive finance and establishment of the reasonable financial supply system.First of all,after combing the domestic and foreign research on financial supply,it is found that with the different economic background of the study,some scholars advocate different effective financial supply structure.Scholars generally believe that the balance of rural financial supply and demand structure is the key to solve the “San Nong" issue.But in general,the research on “reduction of production capacity,reduced inventory,reduced leverage,lower cost,and the make up of short board” is not deep enough,therefore,the analysis of the factors that affect the effectiveness of financial supply in the new situation is not comprehensive.From the macro point of view,the paper analyzes the relationship between rural finance and rural economy,and can not fully grasp the path and method of rural financial supply side reform.Secondly,in the above context,this paper makes a theoretical study,including the rural financial development theory,institutional change theory,etc.On the basis of theoretical research,this paper describes the current situation of rural financial supply from five aspects: the development of financial institutions,financial institutions,agricultural loan system,financial supply financial supply services,financial supply side effect of the reform.After that,this paper makes some empirical research.This study collects the relevant data of rural financial supply in recent 10 years and divided the country into four typical regions.The government financial expenditure on agriculture(F)and the balance of rural financial institutions(R)reflects the supply of rural finance,and reflect the situation of rural economic development in rural per capita GDP.The result shows that the correlation coefficient of fiscal expenditure is 0.41,and the correlation coefficient of loan balance in financial institutions is-0.017,the supply of rural financial institutions has a certain inhibitory effect on rural finance.For further study,it makes an empirical analysis of the factors that affect the supply of rural finance in China,classifies the data obtained in the study,and divides China into three regions: Eastern,central and Western Regions.The results show that the number of cultivated land and the number of houses in rural households have little influence,and the Z value of family assets is 0.71.The effect of income is significant at 10% level,on other areas,whether the farmers have secured loans to financial loans has the greatest impact at the 1% level.This shows that the mortgage system should increase the intensity of reform,and the reform in different regions should be different.Third,from the perspective of game theory,this paper analyzes the causes of the problem of rural financial supply and gives some policy recommendations on the reform of rural financial supply side.: focus on the development of rural banks and loan companies in the East,the promotion of the new financial institutions in central part of China and to promote the comprehensive development of Rural Financial Cooperatives and small loan companies in the West part of China.In addition,it also proposes the reform of the rural credit system and the improvement of the new medical insurance system.Government should clearly regulate the informal financial institutions,and the financial support of the relevant facilities as well as strengthening supervision should be fully valued.