The Impact Of Financial Development On Agricultural Modernization And Its Countermeasures

Shandong Province as a major agricultural province in China,the development of agriculture can fully promote the province's economic development,as the basis of economic development,in recent years,the total agricultural output value accounted for the proportion of GDP has declined,but the possession of the position in the whole national economy is still irreplaceable.Although agriculture has played an important role in the national economy,but in China,giving priority to the development of industrial policy under the guidance of agricultural development in Shandong province is relatively lagging behind,which leads to the development of the agricultural modernization level in Shandong province is relatively low.So far,the modernization of agriculture,as a key link in the process of modernization,has become the short board of the modernization of Shandong province.During the period,capital became the first driving force of agricultural modernization.Among them,the financial needs of the development of agricultural modernization mainly come from rural finance.Rural finance provides the material foundation for the healthy and rapid development of agricultural modernization,however,since the reform and opening up,China's rural financial system has been perfected constantly change and rural finance in Shandong province is no exception has been in the change and improvement process,however,in Shandong Province,the rural financial system there are still many the shortcomings and defects.Among them,the lack of financial support for agriculture in rural areas is the "bottleneck" of the development of agricultural modernization in Shandong province.Therefore,this paper summarizes the domestic and foreign agricultural modernization of rural financial impact of the research and the basic theory,analyzes the present situation of Shandong province agriculture modernization and rural.Financial development process and the problems,and then use the method of quantitative and qualitative analysis of the impact of rural finance in Shandong Province on the development of agricultural modernization,and points out Shandong rural finance in agricultural modernization,there is an outflow of money credit problems and shortcomings,using principal component analysis to evaluate the level of agricultural modernization of Shandong Province,and then select the empirical test on the relationship between rural financial development and agricultural modernization of Shandong Province Rural Finance and agricultural modernization in 1993-2014 20 years of data.Finally,the empirical test results show that,due to insufficient supply of rural finance in ShandongProvince,although there is a certain role in promoting the development of agricultural modernization,but the effect is not obvious.Reasons for inadequate supply of rural finance in Shandong province were analyzed based on the efforts to increase policy support to encourage financial institutions to support agricultural modernization,improve the rural financial service system of two large angle and puts forward the relative countermeasures,in order to provide useful ideas for the reform of the financial system and innovation of Shandong Province agricultural village.