Research On The Evolution And The Improvement Of Systemic Negative Investment In China Rural Areas

Since the reform and opening up,along with market economy promoting,China's economy has achieved significant progress,and the financial system diversified which includes cooperative finance,commercial finance,policy finance and folk financial.However,urban-rural financial structure raised by urban-rural dual economic structure has caused a lot of financial problems which cannot be ignored,one of which is the systemic negative investment of rural finance."The systematic negative investment" refers to that a bank or other financial institutions get savings from inhabitants of a region,but don't loan to the region correspondingly(Boatright,1999?Wang Shu-guang and Deng Yi-ting,2006).Systemic negative investment of rural finance refers to financial institutions absorbing a large amount of savings from rural areas,but not giving a certain loan to the region.It is estimated that financial institutions' deposit-loan gap was as high as 2.70503 trillion dollars in 2015.The paper combines many methods,such as qualitative analysis,quantitative analysis,normative analysis,empirical analysis,logic analysis and historical analysis.Thesis is divided into six parts to introduce it systematically.In the first chapter,the paper firstly introduces the background and significance of the selected topic;Secondly expounds the concept of systemic negative investment and its criteria;Then summarizes the studies from scholars at home and abroad;Finally introduces the ideas and technical route.The second chapter introduces the evolution,which are the period of planned economy,the early period of reform and opening up,the late period of reform and opening up,the deepening period of reform.The third chapter firstly analyzes reasons of the systematic negative investment of rural finance from mufti-dimension,such as national preferential policy,dual economic structure,financial repression and the poor environment of rural financial ecology;The fourth chapter mainly introduces its negative effects according to rural economy,urban-rural integration.etc.The fifth chapter includes empirical analysis: using methods of unit root test,co-integration test,VEC test,Grange test and impulse-response analysis to research the relation of rural systematic negative investment with rural growth and urban-rural income gap.the result is that the systematic investment of rural finance has positive relationship with urban-rural income gap,rural systemic negative investment rose 1%,the income gap between urban and rural areas will increase 0.4828%;Rural economy has inverse relationship between the income gap between urban and rural areas.The sixth chapter puts forward corresponding strategies.At present,the deposit-loan gap of rural finance is still expanding.It is not only restricts rural economic development,but also affects social stability,which is the focus of all walks.Therefore researches on the evolution and improving strategies of systemic negative investment have important practical and theoretical value.