Analysis On Rural Financial Development's Influence On Rural Residents' Consumption

Agricultural plays a pivotal role in Hubei Province.The development of rural economy positively correlates to the development of Hubei Province,which key is whether the quality of life and income levels of people who lived in rural place can be improved.Consumption remarkably serves as a stimulus of the rural economic growth.To establish a long-term mechanism of expanding the consumption of rural residents,not only do we need the support of government,but also the function of rural financial markets.Against this background,it is of great significance to probe into the impact of rural financial development on the consumption of rural residents in Hubei Province.In recent years,with the rapid economic development in Hubei Province as well as growing of total consumption of rural residents,the consumption structure is gradually optimized,which is largely due to the rapid development of rural finance.The initiated agriculture-supporting policies have been continually promoted the development of agricultural modernization,the rural economy,farmers' incoming and living standards.This paper at first puts forward the background and significance of this topic.A simple review of foreign and domestic references was presented.The foreign literature mainly focus on the study of consumption theory,and the domestic are mainly classified by national and local.Based on the theoretical basis of rural financial development,this paper analyzes the current situation of rural financial development and the current situation of rural residents' consumption,and present the current scale and structure of rural finance,the total amount of rural residents' consumption.Then,through the empirical analysis of ADF test and co-integration test in Hubei province from 1982 to 2015,we found that the rural financial development in Hubei Province will have an impact on the consumption level of rural residents.The regression analysis shows that the rural financial development and the relationship between the rural residents 'consumption level:there is a long-term and stable relationship.The rural financial development in Hubei Province has improved the level of consumption of rural residents to a certain extent.But the extent of the impact of different indicators vary accordingly.Although the rural financial development in Hubei Province can promote the consumption of rural residents,but the rural financial development in Hubei Province still has the following problems:rural financial market is not perfect;rural finance is not enough to support agricultural development;rural financial environment is not perfect and so on.Therefore,according to the previous theoretical analysis and realistic analysis,it is necessary to accelerate the development of rural finance from the four aspects:perfecting the financial system,promoting farmers' income,speeding up the rural financial innovation and optimizing the rural financial environment.Therefore promoting the consumption of rural residents can be more effectively.