The Effect Of The Agriculture Development Bank Loan Transaction On Agricultural Economic Development

China is a big country of agriculture,the development level of agricultural econom y have a direct impact on the overall economic.Our country is still under the proc ess from traditional agriculture to modern agriculture.Compared with foreign countr ies,it is still at a low level.Finance is the core of economic development.Therefo re,the key of promoting economic growth in agriculture is to perfect the rural fina ncial system.The agricultural Policy-based Finance plays a crucial and basic role in China's rural financial system,and agriculture development bank of China is the ke y of our country's agricultural Policy-based Finance.The effect of the agriculture d evelopment bank loan transaction on agricultural economic development,that is the purpose of this thesis attempts to deal with.This thesis is composed of four parts.The first part is the summary of Agricultural Policy-based Finance's theory.The second part is the history of agriculture development bank of China.The third part is empirical study,we select the Grain loan,the Medium and long term loans and the local agricultural economy as the study subjects.Using statistic s and econometrics methods to analyze the relationship between this three subjects.According to the VECM model,these three variables has long term and stable relat ionship.In long term,the Grain loan has a negative influence on agricultural econo my and the Medium and long term loans has a positive influence.But the influenc e has a opposite direction in the short term.According to the Granger causality tes t,there is a reciprocal Granger causality relation between the Grain loan and agricultu ral economy.According to the impulse response analysis,the positive influence of Grain loan achieve its peak in the second phase,but the influence is limited in the long term.The negative influence of Medium and long term loans turns to positiv e in the third phase,achieve its peak in the fifth phase and maintain a large positi ve impact in the long term.The results reflect the agriculture development bank loan transaction has a positiv e influence on agricultural economic development.Based on the results,we advised the Bank should coordinate the different kinds of loans to maximize the the effec t of financial support for agricultural.