Research On Regional Differences Of The Formal Financial Development In Shaanxi

Regional finance is an objective phenomenon in financial development process of bigcountry economy, due to the natural conditions, economic conditions, social and technicalconditions,financial operation and development show a significant geographical features. Inthe crucial period of reform and development, Chinese economic structure changesquickly,China is already one of largest of the the regional differences of economic and socialdevelopment,which is reflected in the differences of regional financial development, thenexploring the spatial and temporal motion law of the regional financial and studying on therelative conditions and development trends of regional financial difference, which have asignificant for regional economic development,even the overall economic health of running.So is the rural finance, as the important component of regional finance, and the key factor torural economy development, it has a significant to study on the regional difference of ruralfinancial development.In the less developed regions of Shaanxi, unique geographical features, from north tosouth, forming three landform areas such as Northern Shaanxi plateau, Guanzhong Plain,Qinba mountain, which determine the differences of regional economic and financialdevelopment. In transition period from traditional agriculture to modern agriculture, regionaldifferences is an important feature of "Agriculture-countryside-farmer" issues, including notonly the distinct characteristics of the regional rural economy,but also the significant ofdevelopment difference of regional rural financial.To choose regional financial developmentdifference in Shaanxi as the objective, to explore the regional differences, causes, changetrends and economic impacts, which are not only to enrich the research content of regionalfinance, but also to provide theoretical support on rural economic growth in underdevelopedareas from the finance point of views.Based on the above research background and current situation, the dissertation takes theShaanxi rural financial development regional differences as the research objective, makes fulluse of finance, financial geography, macrioeconomics and development economics and so on,building rural financial development indicator system through both quantity and quality of theuse of statistical methods to accurately measure Shaanxi rural financial development difference, exploring its formation mechanism and reasons, analyzing its long-term trend andfluctuation characteristics and the function of economic development, which providingoperable policy suggestion for promoting the Shaanxi rural financial development, andcontractible area difference.According to this logic, the content of this dissertation is as following:The first chapter is introduction. This chapter mainly elaborates the background,significance, domestic and foreign research situation, research ideas, methods and the possibleinnovation and shortage of research.The second chapter is the theoretical framework. Based on literature review, in theperspective of the financial demand from rural economy participants, we built the theoreticalframework including rural financial development decision elements, took the rural financialdevelopment as system development process, which is the essential elements within thesystem (rural financial demand supply, formal finance product and service supply ability,innovation ability), and external power (rural economics development level, governmentbehavior and rural financial ecology environment). And then we tried to explain the regionaldifferences of rural finance development from exogenous mechanisms (elements of thesystem and regional natural factors) and endogenous mechanism (rural economy level andinnovation ability).The third chapter, what are the regional differences of formal rural financial developmentin Shaanxi.To establish the formal financial development indicator system with quality andquantitiy,then the comparsion analysis of development scale and speed show that in recentyears, the size of the loan in Yulin exceeds Shangluo and Weinan regions, which lead to thegradually big gap of regional agricultural loan scale.Rural formal financial institutionsshowed agricultural bank far away for farming seriously, the rural credit cooperatives(RCC) isa single large formal financial institutions, postal savings and other new types of ruralfinancial institutions development insufficient.The analysis of rural financial developmentlevel regional difference showed that Shaanxi rural formal finance difference presented" U"feature, and the inner-regional difference was greater than the inter-regional difference.duringthe comparing the difference,in Yulin county, rural financial development regional differenceshowed an increasing trend between1997-2009, the Weinan and Shangluo showed "U" typefeature. The judgment on Shaanxi rural financial development and economic growth relation,which showed that in the short term rural financial development promoted one-way economicgrowth, but in long-term existence of the blocking phenomenon between them. Compared tothe performance differences of Shaanxi rural formal finance supporting rural economic, thehighest performance is in Weinan,the second one is Yulin, the lowest region is Shangluo. The fourth chapter is to study on the interpretation of the differences of rural financialdevelopment regional in Shaanxi. Based on the cointegration test and shapely valuedecomposition method,which tried to analyze the forming reasons of overall and sample areasof formal financial development difference in Shaanxi.Although elements effecting onregional rural financial development difference is vary in different area, the influence ofregional natural elements (farmland, labor) are most important, other elements such as thelevel of economic development, financial innovation and institutional factors on regionaldifferences in the formation are also very important.The fifth chapter is to analyze the convergence and the wave characteristics of formalrural financial development regional difference in Shaanxi. Shaanxi,Yulin and Shangluo ruralfinancial development regional difference presented the alienation phenomenon,but inWeinan, rural financial development regional difference in the future will show a narrowingtrend. With the determinant factors of regional financial of regional economy, education,innovation ability and policy interventions and so on are gradually convergence, the regionalrural financial development trend is in convergence. Now, the test results showed that theconvergence region presents apparent stage and regional, before2003, all regions presenting σconvergence, after2003only Weinan has σ convergence. Absolute β convergence resultsshow Yulin rural financial development has been rendered diffusion situation, results of otherareas are consistent with σ convergence. In a longer period of time, Shaanxi rural financialdevelopment regional differences will continue to exist, and "measurable difference" problemof rural formal financial development should be considered from qualitative and quantitativeangles.The sixth chapter is the rationality judgement on Shaanxi rural financial developmentregional differences. Shaanxi rural financial development regional differences will continue toexist, and in different regions the formal rural financial development has differentcharacteristics. Based on the growing financial needs satisfaction and coordination degree ofrural finance and rural economy, we tried to judge Shaanxi rural financial developmentregional differences tendency. The results show the regional disparity of formal rural financialdevelopment of rural is in the process of economic and financial development normalphenomenon, and is reasonable, but rural financial development regional convergence islow-level balanced embodiment, long-term and may not conducive to economicdevelopment。The seventh chapter is countermeasure proposal of the development of rural finance andregional balanced rural finance development. In the light of Shaanxi rural financialdevelopment lags behind and the situation of regional differences in long-term, we try to propose a perfect rural financial system, to improve the rural financial development level,coordinate rural finance and rural economic development and to regulate regional differences.