An Empirical Study On The Relationship Between Rural Financial Development And Rural Economic Growth In Zhejiang Province

In the process of modern economic development,finance serves as an intermediary to communicate the connection between savers and investors,and is an effective means of enhancing the accumulation of social capital.In our country,building a new socialist countryside and realizing the socialist modernization are the most basic aspects of rural economic growth.However,the realization of rural economic growth is closely linked with the development of rural finance.The phenomenon of financial repression is widespread in the vast rural areas of our country.Problems such as the low scale of financial development,the single financial services and the inefficient financial system have emerged.This has greatly restricted the improvement of the economic level in rural areas.To find solutions to problems and countermeasures,we must first of all explore the relationship between rural financial development and rural economic growth theory.There are great differences in the level of economic development in our country.There is a stratification of the eastern,central and western regions as a whole.There is a great difference in the degree of mechanization in the corresponding rural areas,the development of related enterprises and the education level of peasants,Coupled with the asymmetric information,making the rural financial support for the rural economy can not get the maximum play.Although many scholars pay enough attention to the relationship between the financial development in rural areas and the rural economic growth in our country,they neglect the differences in the relations between the two.This targeted research is relatively small.After a summary of existing literature we found that the eastern region of the rural finance can effectively promote the rural economic growth,and the central and western rural areas due to the low level of economic development,rural financial development and economic growth present a negative correlation.The level of economic development in the Yangtze River Delta has always been at the forefront of our country.Zhejiang Province is also one of them.Zhejiang Province,in accordance with the deployment requirements,has actively implemented the principle of "five water and common governance" and "three reforms and one dismantling",Laying a solid foundation for the establishment of "one control,two reductions and four basic" agricultural green development system.The Ministry of Agriculture has designated Zhejiang Province as the only pilot province for ecological recycling agriculture in China.Family farms and other new types of agricultural management entities have shown a good momentum of development.Therefore,in-depth exploration of the relationship between rural finance and rural economic growth in this province can provide reference for other regions with more developed economy in the Yangtze River Delta.Based on the relationship between rural finance and rural economy in zhejiang province,this paper combines the theories and methods of domestic literature and discusses how Zhejiang Province can establish a large-scale agricultural development under the general trend of modern agriculture Rural financial system in order to improve the operational efficiency of financial institutions so that rural financial resources are in a rational allocation and promote the development of rural economy.Drawn from theoretical analysis and empirical analysis,The conclusions are as follows,: First,the scale of financial development and the efficiency of savings and investment have a significant positive impact on the per capita GDP of rural Zhejiang,while the marginal productivity of rural capital has a negative impact on the per capita GDP of rural Zhejiang.From the regression results We can see that the influence of financial development scale,investment efficiency of saving and marginal productivity of rural capital on the per-capita GDP of rural areas in Zhejiang Province weakened in turn;Second,Granger test shows that the relationship between financial development scale and rural per capita GDP Each other Granger causality,saving investment efficiency and Zhejiang rural per capita GDP are also Granger causality,but marginal productivity of capital is the Granger cause of per capita GDP of rural Zhejiang,and vice versa is not established;Third,rural financial development in Zhejiang Province Rural economic growth mutual promotion.The innovation of this paper is reflected in the following two aspects: First,summarize the domestic and foreign scholars in exploring the relationship between rural finance and rural economic growth,the use of rural financial indicators is the financial-related rate,relatively simple,rural economic growth indicators of agriculture GDP,the output value of the primary industry,agriculture,forestry,animal husbandry and fishery,etc.,have not formed a unified standard.Therefore,in addition to the financial related rate,this paper adds the conversion efficiency of saving investment and the marginal output efficiency of rural capital in the variables of rural financial development.In measuring the indicators of rural economic growth,due to the development of rural economy in Zhejiang Province,the service industry Occupy a large proportion,therefore,in addition to agriculture,forestry,animal husbandry and fisheries,joined the rural service industry as a measure to get a more comprehensive analysis.Second,regional innovation.Due to the relatively developed economy in Zhejiang Province and the Yangtze River Delta,the relationship between economy and finance in rural areas has not been studied.This paper conducts empirical research on the relationship between rural financial development and rural economic growth in Zhejiang Province.To some extent,Is a supplement to the literature in this area.