Study On The Rural Financial Dualism In China

Since the 80s of the 20th century, the demand for the financial service in rural areas has been increasing with the development of rural economy, however, the service that formal finance offers is unable to meet the demand for the financial service of countryside, and the formal finance is unable to cover rural market effectively. So the informal finance activities which had existed for several thousand years flourishes again in most rural areas in China. Various informal finance forms exist extensively, and the demand for funds of peasant household's and rural small and medium-sized enterprises is satisfied through informal finance to some extent. Thus attracted our attention on the financial dualism problem in rural areas in China.This dissertation analyzes and explores the evolvement, formation, current situation, operating mechanism of China's rural financial dualism, the effect of rural financial dualism on peasant household's welfare improving and the financing of rural small and medium-sized enterprises, and relevant policy effect of rural financial dualism under the guidance of relevant finance theories; It studies institution generation, institution changes, institution supply innovation of rural financial dualism with the analytical method of neo-institution economics. On the basis of the above-mentioned analysis, this dissertation has used experience of some countries and areas for reference, and has probed into the role of government in rural financial reform and development, putting forward the policy recommendations on China's rural financial reform finally. The dissertation is divided into 6 parts:The first chapter of the first part is "Introduction". It is the starting of the dissertation. It introduces the study background and meaning, the main achievement regarding the financial dualism at home and abroad, and defines relevant concepts and expounds the goal in research, content, method and the possible innovation. The second chapter is "Theory review and reference". It has reviewed and drawn lessons from the relevant theories of rural finance, social capital theory and the harmony thought.The third chapter of the second part is "Evolvement and formation of rural financial dualism in China". It explains the evolvement course of China's rural financial dualism since "minguo" period, and the formation cause of China's rural financial dualism after reform and opening-up. The fourth chapter is "Empirical analysis of China's existing rural financial dualism". It explains the current development situation of rural formal finance, existing problem of rural formal financial market, and it also provides the main form, scale and quantity, interest rate and operation characteristic of rural informal finance, explaining the operation characteristic of rural financial dualism finally. After that, the next three parts is the core of the dissertation. The third part is "Rural formal finance and informal finance in the perspectives of segmentation and integration". It explains the efficiency and limitations of rural formal financial market, the substitution and complementary relations of rural informal finance and formal finance, the segmentation of rural financial dualism, capital circulation restriction and efficiency loss, analyzing the rural financial dualism on the basis of the financial symbiotic theory. The fourth part is "The economic effect and relevant policy effect analysis of rural financial dualism". Based on appraisal of the economic effect of the rural financial dualism, it explains the influence of rural financial dualism on social financing amount, peasant household's welfare improving, financing of rural small and medium-sized enterprise and rural economic growth, and explains the impact of rural financial dualism on monetary policy and rate liberalization policy. The fifth part is "The institution economics analysis of rural financial dualism". It carries on the rural financial dualism in terms of institution economics. It explains specifically the institution formation of rural financial dualism, institution changes, institution efficiency, the evolvement of informal finance to formal finance, the cause and impediments of the institution changes of the private capital entering rural financial industry, the rural finance supply institutional innovation.Finally, the eighth chapter of the sixth part is "Thinking and suggestion of rural financial reform of China". It makes an introduction and summarization to the experience of rural financial reform and development in China Taiwan, South Korea, Philippines at first, on this basis, and proposes rural financial reform goal in China and building thinking of rural financial subjects, rural financial market reform, rural formal financial institution reform, the development suggestion of rural informal finance, the function of government in the rural financial development.