Research On Financial Support Issues In The Economic Development Of Tibetan Agricultural And Pastoral Areas

As one of the fundamental factors for economic growth,finance plays a irreplaceable role in assisting the economic development of rural sectors.Rural residents,taking the proportion of 72.26%,are the major economic units in Tibet.The central government always puts weight on Tibetan issues,especially after opening of the 3rd Working Meeting on Tibet,which brought rich financial policies in order to support Tibet's development.Constrains such as the natural geography,climate,multitude and unique religious society and history,however,make it harder for the financial sector in Tibet fully take use of the policies.Under the circumstances above,it is really a practical and challenging task for both the local government and financial companies to maximize the dividend policies that are of great significance in stimulating the growth process of Tibet.Based on the “financial sector-income”model from Endogenous Growth Theory,this paper develops an econometric model in order to analyze the impact of financial supports,mainly based on the banking system,on improving the income of rural residents in Tibet since 2000.Combining two dimensions from both the long-run and short-term perspectives,we argue that: In the long-run,while the accumulation of financial capital play a positive role in improving rural income,biases are still strong reflected by the efficiency and structure of investment and further steps should be taken in optimizing the arrangements of financial resources;Short-term evidence shows that the two parts have a tendency to adjust their change in the long run,although,statistically speaking,financial supports do not show a salient influence.Financial resources and the inner motive from the rural residents have not formed a positive cycle for rural development,which calls for a unified incentive-compatible entity including the local government,financial sectors and rural residents in the near future.