Research On The Convergence Of Rural Financial Development In China

China is a large agricultural country.Issues of agriculture,farmer and rural area are important issues affecting China's national economic development.Rural finance which plays an important role in rural economic development is an important means to solve the Issues of agriculture,farmer and rural area.The unbalance development of finance between provinces and towns is common in China.Not only do the regional development difference of rural finance continue to exist but it is becoming more acute.Therefore,this paper starts to study the convergence of rural financial development in China which not only has important theoretical value,but also has major operation significance.Based on the review of theories and empirical Tests,this paper use the Thiele index as the measurement of regional heterogeneity and Differences in regional development.Then in the view of the regional heterogeneity,using the Nonlinear Time-Varying Factor Model and the Convergence Club Clustering Method to study the convergence of China's rural finance.On the one hand,this paper Analysis the Characteristic of the convergence across economic blocks,on the other hand,it recognizes the convergence clubs in the process evaluation of China's rural financial development.And also analysis the trend and impact factor of the convergence clubs.The empirical results show that the regional heterogeneity exists widely in rural regions.Regional development difference of rural finance become larger and persist indefinitely.Nation-wide rural financial development didn't exhibits the trend of convergence.only western regions and northeastern regions exhibits the trend of convergence across economic blocks.There are four convergence clubs in the process of China's rural financial development.Economic development and regional policy have important influence on the formation of China Rural Financial convergence club.However,difference between the Convergence clubs become larger.