Research On Financial Support Of New Rural Cooperative Economy In China

"Agriculture, Countryside And Farmer" Issues, is one of the most momentous problems that affect the sustainable, stable and healthy development of china’s economy and social stability at present and for a long time in the future. In the process of new socialist countryside construction and agricultural modernization advancement, the new rural cooperative economy is the only way which must be passed. The rapid growth of new rural cooperative economy has become a major part of new socialist countryside construction, and it is a vital strategy of building a socialist harmonious society to promote economic growth in the rural areas. Financial policy is a main means to regulate the economy. Therefore, the development of new rural cooperative economy relates to the coordination between financial sectors, and it is inseparable from the state financial policy and the support of financial institutions. The rural financial system, as the most important allocation system of capital element, will undoubtedly become a centre in the reform of rural economy. At present, the growth of China’s new rural cooperative economy requires a large amount of capital accumulation and reinvestment that is connected with the financial support. From the current condition, however, the majority of social capital flows to the non-agricultural sectors with a high comparative benefit, while the rural areas subjected to capital shortages are still confronting fund outflows through various channels and the financing credit of agricultural professional cooperatives becomes more difficult as well. Lack of appropriate and effective financial supply, and unable to satisfy the financing demands of rural cooperative economic entity result in a difficult position of the rural economic development currently, and they are also main reasons for the slow growth of famers’ income.Under this background, the research of this dissertation is on China’s new rural cooperative economy based on financial support theory, and the article also analyzes its current development, problems and causes in a comprehensive and systematic way. Meanwhile, according to foreign experience, the dissertation using an empirical study method puts forward suggestions and strategies for financial support of new rural cooperative economy, and finds out a financial support course suitable for China’s national conditions and new rural cooperative economy.The full text is divided into eight chapters:Chapter one is an introduction part. This chapter includes the research background, purpose and significance, domestic and foreign studies related to financial support of rural cooperative economy, the main content and the technical route.The second chapter has a discussion on concepts and features of new rural cooperative economy and organization. The author defines the scope of cooperative economy, rural cooperative economy and new rural cooperative economic organization, and explains related financial support theories on rural cooperative economy, including the financial supply and demand theory, rural credit subsidy theory, finance deepening theory, financial restraint theory and small loan or micro finance theory. The relation between rural cooperative economic growth and rural financial support is also dissertated in this chapter.Chapter three from five aspects of China’s new rural cooperative economy, namely, the financial demands, financial credit supply entity, financial market development and innovation, financial infrastructure and financial support policy, details the current situation of financial support of new rural cooperative economy.The fourth chapter researches on problems and causes of financial support of China’s new rural cooperative economy. According to the five aspects of China’s new rural cooperative economy which are mentioned above, problems and causes are analyzed.In chapter five, the author summarizes financial support researches on some countries’ rural cooperative economy, these developed states including American, Japan, France and the developing countries referring to India, Bangladesh and Brazil. All these studies have a realistic significance to China’s financial support development of rural cooperative economy.The sixth chapter is an analysis on financial supply and demand of China’s rural cooperative economy. With gray correlation method, this chapter analyzes the relation among rural financial scale, rural financial growth structure and efficiency, and the development of rural cooperative economy. It points out that the rural financial development scale index plays the most crucial role in boosting rural cooperative economic growth, and namely expanding rural financial scale can at utmost advance the development of rural cooperative economy.Chapter seven from five aspects deals with policy suggestions on financial support of rural cooperative economy.