Efficiency Measurement And Influencing Factors Analysis Of Rural Financial Support For Agriculture In China

For a long time,“Issues concerning agriculture,countryside and farmers” are still the hot topic of sustainable and healthy development of our economy and socialist modernization.As a big agricultural country,the status quo of large rural population and the important status of agricultural development in our economic development all determine the importance of solving “issues concerning agriculture,countryside and farmers” to our economic and social construction.Since 2004,the CPC Central Committee and The State Council have issued the No.1 Document of the Central Committee for 19 consecutive years,focusing on solving the problem of urban-rural dual structure and unbalanced economic development between urban and rural areas,encouraging mechanized agricultural production,constantly improving the basic rural operation system,and continuously advancing the reform of rural financial institutions,thus charting the course for solving problems in agriculture,rural areas and farmers.In addition,for many years,CPC Central Committee has held the central rural work conference to analyze the situation and problems of rural economic construction and deploy work on “Issues concerning agriculture,countryside and farmers”,attached great importance to rural development and construction.Xi Jinping gave a report on the 20 th National Congress of the Communist Party of China on October 16,2022.He emphasized the importance of promoting rural revitalization in an all-round way to comprehensively build a modern socialist country,and pointed out that we should continue to improve the agricultural support and protection system and improve the rural financial service system.Finance can optimize resource allocation,spread risks and reduce losses.Rural finance plays an important role in rural economic and social construction.Giving full play to the function of rural finance will help to further improve the efficiency of rural economic and social construction,ensure grain production and increase rural residents’ income.Starting from the perspective of rural finance to explore the new idea of power rural economy development and analyze the problems of rural finance system and propose solutions shows great importance for our country to consolidate achievements in the fight against poverty,continue to promote the rural revitalization and promote the high-quality economic development.Financial efficiency measures the relationship between financial resource input and output,and can reflect the contribution of financial resource input to economic development,so efficiency value is a feasible index to evaluate the effect of rural financial support for agriculture.This article discusses the current situation of rural finance development from the development scale of rural financial institution,rural loan and agricultural insurance.Based on the provincial panel data of 30 provinces(except Xizang)from 2010 to 2019,this paper uses the DEA-BCC method to calculate the efficiency value of financial support to agriculture in each province.It is found that the efficiency value of financial support to agriculture in eastern China is higher than that in central and western China.On this basis,the Malmquist index decomposition was carried out to investigate the dynamic changes of the efficiency value of financial support agriculture from 2010 to 2019,and it was found that the change of total factor productivity was less than 1,which was mainly caused by the change of technological progress.With the efficiency value obtained from data enveloping analysis as the dependent variable,fixed effect OLS,random effect OLS,mixed Tobit and random Tobit were used for regression analysis and comparison of the efficiency value of financial support for agriculture.It is found that in the four regression models,the urban-rural dual economic structure has a negative impact on the efficiency value of financial support to agriculture,and the per capita agriculture-related loans and the total power of agricultural machinery also have a negative correlation with the efficiency value of financial support to agriculture in some regression models.Based on the empirical analysis results,countermeasures and suggestions were provided for the development of agricultural and rural economy and the increase of rural residents’ income.This paper argues that China still needs to further play the role of rural finance,encourage rural financial product and technology innovation,improve rural financial service efficiency and availability,give full play to the role of agricultural insurance in ensuring the stability of agricultural production and reducing the loss caused by natural disasters,continue to promote the scale and mechanization of agricultural production,and promote the integration development of the three rural industries.It is also necessary to extend the industrial chain of agricultural production,raise added value,and create more ways for rural residents to increase their incomes.