Rural Financial Deepening,Agricultural Technology Progress And Rural Industrial Convergence Development

This paper is about the study of relations of rural financial deepening,agricultural technology progress and rural industrial convergence development.The rural industrial convergence development is the key to sustainable development of agricultural and countryside.The rural industrial convergence development is conducive to enhancing the efficiency of agricultural development,expanding the field of increasing farmers’ income,and cultivating new growth points in rural areas.It is an important link in solving the issues of agriculture,farmer and rural area at the present stage,and it is also the new normal for China’s economic development.The important characteristics of the new stage of agricultural development.In order to promote the rural industrial convergence development,it is necessary not only to improve the lagging construction of rural infrastructure,but also to remove the obstacles of system and mechanism faced in the process of rural industrial convergence development,and also to break through the bottleneck of factor supply which restricts the rural industrial convergence development.Among these factors of supply,especially the demand for capital and technology,there is an urgent need to deepen rural financial services by expanding the size of rural finance,optimizing the rural financial structure and improving the rural financial efficiency to increase the financial support for the rural industrial convergence development;At the same time,it is also necessary to speed up the progress of agricultural technology and enhance the technical support for the rural industrial convergence development through promoting agricultural technological innovation,agricultural technology extension and agricultural skills training.Therefore,it is of great theoretical value and practical significance to study systematically the relationship between rural financial deepening,agricultural technology progress and rural industrial convergence development.(1)Main Contents of this Study1)This paper systematically constructs the theoretical analysis framework of rural financial deepening,agricultural technology progress and rural industrial convergence development.This paper scientifically defined the definition and connotation of related concepts,systematically elaborated the mechanism of action between rural financial deepening,agricultural technology progress and rural industrial convergence development,and determined the measurement index of rural financial deepening,agricultural technology progress and rural industrial convergence development.2)This paper analyzes the current situation and problems of rural financial deepening,agricultural technology progress and rural industrial convergence development.Firstly,the paper gives a descriptive analysis of the industrial foundation and the status quo of rural industrial convergence development in China,and systematically discusses the changing trend of the level of rural industrial convergence development in China,the characteristics of provincial distribution and regional differences.Then it analyzes the current situation of rural financial deepening and agricultural technology progress and the specific practices and problems of rural financial deepening and agricultural technology progress supporting rural industrial convergence development.3)This paper empirically studies the impact of rural financial deepening and agricultural technology progress on rural industrial convergence development.Based on the panel data of Chinese provinces from 2008 to 2016,this paper uses FE,PCSE,FGLS,SYS-GMM,spatial measurement,threshold regression and other measurement methods to empirically test the impact of rural financial deepening and agricultural technology progress on rural industrial convergence development.And from the perspective of agricultural technology progress,the empirical test of rural financial deepening impact on rural industrial convergence development of the transmission mechanism.4)This paper puts forward the long-term mechanism and policy suggestions of rural financial deepening and agricultural technology progress to promote rural industrial convergence development.Based on the theoretical and empirical research conclusions,and in combination with the actual situation of China,this paper designs the long-term mechanism of rural financial deepening,agricultural technology progress and the combination of the two to promote rural industrial convergence development,and puts forward the corresponding policy suggestions to promote rural industrial convergence development in China.(2)Main Conclusions of this Study1)During the study period,the level of rural industrial convergence development in China was on the rise,but it had obvious regional heterogeneity.The results show that the level of rural industrial convergence development in China has been significantly improved from 2008 to 2016,with an average annual growth rate of 11.97%.With the eastern and central and western regions as the regional division standards,rural industrial convergence development in China shows obvious regional differences.In terms of the overall level of rural industrial convergence development,the eastern region is obviously higher than the central and western regions.However,in terms of the growth rate of rural industrial convergence development,the central and western regions are obviously faster than the eastern regions.The gini coefficient,theil index and logarithmic deviation mean,which are used to measure the regional differences in the level of rural industrial convergence development,show a decreasing trend year by year on the whole,indicating that the differences in the level of rural industrial convergence development between provinces in China are narrowing.2)Rural financial deepening has significantly improved the level of rural industrial convergence development in China,and there are obvious regional differences in this influence.The empirical results of FE,PCSE,FGLS and SYS-GMM method show that,on the whole,rural financial deepening is conducive to improving the level of rural industrial convergence development in China.At the same time,there are obvious regional differences in the promotion effect of rural financial deepening on rural industrial convergence development.Compared with the central and western regions,the promotion effect of rural financial deepening on rural industrial convergence development is more significant in the eastern region.Further using the panel threshold model test,it is found that the difference in the degree of rural financial deepening,rural human capital and infrastructure level between regions is an important reason for the regional difference in the impact of rural financial deepening on rural industrial convergence development.3)Agricultural technology progress is not only conducive to improving the level of rural industrial convergence development in the region,but also promotes the level of rural industrial convergence development in neighboring areas through spatial spillover effect(technology diffusion effect).The results of traditional measurement show that agricultural technology progress has significantly promoted the level of rural industrial convergence development in China.The results of spatial measurement show that the agricultural technology progress in a region can promote the level of rural industrial convergence development in the neighboring areas through spatial spillover effect,that is,the agricultural technology progress has certain technology diffusion effect.By using the spatial convergence model test,it is found that the level of rural industrial convergence development in China is obviously ? convergent both in absolute and conditional terms,and that agricultural technology progress has a significant promoting effect on the convergence of the level of rural industrial convergence development in China.4)Rural financial deepening significantly improves the level of rural industrial convergence development by promoting agricultural technology progress,that is,agricultural technology progress is an important transmission mechanism of rural financial deepening affecting rural industrial convergence development.The results of the interaction model estimation show that rural financial deepening can effectively improve the positive effect of agricultural technology progress on rural industrial convergence development.The estimation results of the intermediary effect model show that agricultural technology progress is an important way for rural financial deepening to affect rural industrial convergence development,thus revealing the transmission mechanism from rural financial deepening to agricultural technology progress to rural industrial convergence development.Further using the panel threshold model test,it is found that with the continuous improvement of rural financial deepening,agricultural technology progress has a growing promoting effect on rural industrial convergence development,which once again verifies that rural financial deepening has a positive effect on rural industrial convergence development by promoting agricultural technology progress.5)To promote rural industrial convergence development,it is necessary to construct a long-term mechanism of rural financial deepening and agricultural technology progress and their coordination.The long-term mechanism of rural financial deepening to promote rural industrial convergence development mainly includes product innovation mechanism,risk diversification mechanism and coordination and cooperation mechanism.The long-term mechanism of agricultural technology progress to promote rural industrial convergence development mainly includes supply promotion mechanism,demand pulling mechanism and demonstration driving mechanism.The long-term mechanism of rural financial deepening and agricultural technology progress to promote rural industrial convergence development mainly includes financing guarantee mechanism,service support mechanism and environment optimization mechanism.(3)Important Views of this Study1)The core of rural revitalization is industrial revitalization,and rural industrial convergence development is the fundamental way to revitalize rural industry.It must rely on the multiplier effect of rural industrial convergence development,continue to extend the industrial chain,improve the value chain,optimize the supply chain,accelerate the cultivation of new rural formats,new industries,and establish a modern rural industrial system to prosper rural industries.2)There are big differences in the development among regions in China,so the rural financial deepening needs to fully combine the regional characteristics and implement differentiated rural financial deepening strategies according to local conditions,so as to effectively promote the sustainable and healthy development of regional rural industrial convergence.3)When formulating policies to promote rural industrial convergence development based on agricultural technological progress,full consideration should be given to geographical and spatial factors,and new growth points should be formed through the effective spatial allocation of technological factors,so as to drive convergence and coordinated development of rural industries in neighboring areas.4)The effective coordination of rural financial deepening and agricultural technology progress is of great importance to rural industrial convergence development.It must rely on the deepening of rural finance,actively develop agricultural science and technology finance,promote the optimal allocation of agricultural science and technology elements and financial elements,and enhance the internal driving force of the integrated development of rural industries.5)The key to rural industrial convergence development is the prosperity of talents.Without farmers’ knowledge,skills and professionalism,agricultural modernization and rural prosperity can only be castles in the air.Aspiring young people should be encouraged to start businesses,find jobs and live and work in rural areas.(4)Policy Suggestions of this Study1)Take the reform of rural finance as an opportunity to strengthen the financial supply of rural industrial convergence development.Multi-level financial support policies should be improved to alleviate the financing constraints of rural industrial convergence development.At the same time,it should continue to promote the construction of rural credit system,improve rural payment environment according to local conditions,and strengthen rural financial infrastructure construction.2)Promote the technical content of rural industrial convergence development with innovation-driven development as the driving force.It should improve policies for supporting agricultural scientific and technological personnel,foster a space for mass innovation in rural areas,give full play to the innovative advantages of industrial clusters,and better align science and technology with agriculture,innovative achievements with industrial development,and creativity with actual production and operation.3)Support the diversified development of rural industrial convergence on the premise of regional resource endowment.It should highlight regional characteristics and policy differences in light of local conditions,and actively explore diversified models of convergence development of rural industries,such as intra-agricultural convergence,vertical convergence,horizontal convergence,technology penetration convergence and compound convergence.4)Strengthen the ability of rural industrial convergence development with the focus on fostering diversified and integrated actors.It should give full play to the leading role of new types of agricultural business entities,encourage the supply and marketing cooperatives,the postal system and rural collective economic organizations to become more dynamic,and enhance the ability of rural households to participate in rural industrial convergence development.5)Improve the conditions for rural industrial convergence development on the basis of optimizing the industrial development environment.It should improve rural infrastructure,maintain fair competition in the rural market,build a rural public service system,reduce agriculture-related production costs,and improve the overall profitability of the industry.6)Improve the guarantee system for rural industrial convergence development on the basis of relevant institutional building.It should deepen the reform of rural land system and break the bottleneck of land supply for rural industrial convergence development.At the same time,it will improve the regulatory and statistical systems to guide and promote rural industrial convergence development.