The Influence Of Rural Financial Development On Agricultural Total Factor Productivity And Its Mechanism

Since the reform and opening up,after 40 years of development,China's economic construction has made remarkable achievements,and the people's living standards have generally reached a well-off level.However,the problem of rural economic development has not been greatly improved.Because the issue of rural economic development is related to the comprehensive construction of a well-off society,it has received more and more attention from the state.At the same time,General Secretary Xi Jinping proposed a strategy for rural revitalization at the 19 th National Congress of the Communist Party of China,and the issue of rural economic development was once again put on the agenda.The core of rural economic growth lies in the improvement of agricultural total factor productivity,and then the issue of agricultural total factor productivity has become a problem worthy of study and attention.All along,China's total factor productivity has attracted the attention of many domestic and foreign scholars.One of the main research directions is the relationship between financial development and total factor productivity.In this respect,relevant research literature has been full of enthusiasm,but few Scholars directly study the relationship between rural financial development and agricultural total factor productivity.Based on this,from the perspective of rural financial development,this paper systematically explores the impact of rural financial development on the agricultural total factor productivity from both theoretical and empirical aspects,draws conclusions and proposes relevant policy recommendations.This paper first reviews the relevant literature on rural financial development,agricultural total factor productivity,and the relationship between rural financial development and agricultural total factor productivity.Through combing and summarizing relevant literature,we try to summarize the mechanism of rural financial development affecting agricultural total factor productivity.Secondly,the DEA-Malmquist index method is used to measure the agricultural total factor productivity and its composition and analyze its trend.Then,using the dynamic panel data of provinces(autonomous regions and municipalities)from 1998 to 2016,the GMM method is used to analyze the impact and regional differences of China's rural financial development on agricultural total factor productivity and its composition.Finally,the theoretical mechanism proposed in this paper is further verified by the mediation effect model.The results of empirical research show that:(1)from anational level,the higher the level of rural financial development,the higher the agricultural total factor productivity and agricultural technology,and the lower the efficiency of agricultural technology;(2)from the perspective of sub-regions,there are certain differences in the extent to which rural financial development in the eastern,central,and western regions affects agricultural total factor productivity and its composition;(3)rural financial development promotes rural infrastructure construction and thus increases the agricultural total factor productivity;rural financial development promotes the improvement of agricultural mechanization and thus increases the agricultural total factor productivity;rural financial development improves the agricultural total factor productivity by promoting the growth of rural human capital.The research in this paper has deepened the research on rural financial development and has certain reference significance for the formulation of relevant policies.