Research On The Financial Support For Rural Revitalization In China

Beginning with the No.1 Central Document in 1982,the central government has issued a total of 23 No.1 Central Documents focusing on "agriculture,rural areas,and farmers",focusing on rural,agricultural,and peasant issues,highlighting the work of "agriculture,rural areas,and farmers" in China’s modernization process.The important status of the government also shows the criticality and urgency of solving the "three rural" issues.The report of the 19 th National Congress of the Communist Party of China first proposed the implementation of the rural revitalization strategy and included it in the party constitution,which proved that the implementation of the rural revitalization strategy is the top priority of my country’s “three rural”work.Elevated to an unprecedented political height,which reflects our country’s determination to solve the "three rural" issues.The No.1 Central Document in 2018,2019,and 2020 all put forward scientific plans for the implementation of the rural revitalization strategy.The No.1 Central Document in 2021 focuses on rural revitalization and puts forward suggestions for comprehensively promoting rural revitalization.The implementation of the rural revitalization strategy is not only the foundation of the economy and people’s livelihood,but also a necessary condition for the realization of the "two centenary" goals.As the old saying goes,"the people take food as the sky".Marx pointed out: "Agricultural labor is the natural basis and prerequisite for the independent existence of all other labor." China is a large agricultural country,and has always attached importance to agricultural production since ancient times,and has a solid foundation of farming civilization.Agriculture is the source of people’s lives and the foundation of the country’s survival.Only with strong agricultural strength can a country be strong.Agriculture plays the role of Anbang to help the people and is the key to governing the country.The importance of agriculture is self-evident.The rural revitalization strategy is a major decision-making arrangement proposed by the 19 th National Congress of the Communist Party of China,and it has once again raised the issue of "agriculture,rural areas and farmers" to a new height since the construction of the new countryside.Rural revitalization is directly related to the establishment of a modern rural economic system,and is also an important measure for China to achieve high-quality economic development and build a well-off society in an all-round way.The rural revitalization strategy involves economic,cultural,social and other aspects,which are interconnected and complementary to each other.According to development economics and the dual economic theory of urban and rural areas,rural revitalization first needs to promote rural economic development,so rural economic revitalization is the primary task of the rural revitalization strategy.The development of the rural economy is inseparable from the input of production factors,especially the continuous large amount of financial capital investment,which objectively requires the establishment of a wide-ranging,professional,and multi-level rural financial system.Rural finance plays an important role in the implementation of the rural revitalization strategy and is also the vanguard of agricultural modernization.The reform of rural finance is the mission and responsibility of rural finance to better support rural revitalization.At the same time,rural revitalization brings important opportunities for the reform of rural finance.The reform of rural finance also requires this big market--modern agriculture.The development of China’s rural economy is relatively lagging behind.The income and consumption levels of rural residents are still far lower than those of urban residents.The difference in income and consumption between urban and rural residents has long been as high as 2.5 or more.At the same time,the regional imbalance in China’s rural economic and financial development is very obvious.The eastern part has benefited from reform and opening up,factor inflows,and rapid urbanization.The rural economy has achieved the first development,the degree of urban-rural integration is relatively high.The gap between urban and rural income and consumption is relatively small.In terms of financial development,the eastern rural financial institutions have more diverse types,wider network coverage,higher penetration rates,and stronger financial service capabilities.Relatively speaking,the rural economic development in the central and western regions is relatively backward.Farmers’ income channels are limited.Income levels and consumption capacity grow very slowly.Rural financial institutions are relatively single,the penetration rate is low,and financial service capabilities are weak.Especially in the vast and remote western regions,it is still very difficult to obtain high-quality financial services.To this end,we should start to solve the problem of unbalanced and insufficient rural financial development,actively deepen the supply-side structural reform of rural finance,and build a financial promotion mechanism that promotes rural revitalization.In all areas of rural revitalization,especially key areas and weak areas,fully allocate financial resources,so that the diversified financial needs in the process of rural revitalization can be better met.Then,in the process of rural revitalization,does China’s rural financial development,which is characterized by "low starting point,lagging development,and high attention from the government",promotes rural revitalization? Has China’s rural financial development promoted the development of the rural economy? What kind of law does rural financial development present in terms of rural economic development and its impact on residents’ income and consumption? Has the regional imbalance in rural financial development caused the regional imbalance in rural economic development? Over time,has the impact of rural financial development on rural revitalization changed significantly? These problems are theoretical problems that exist and need to be solved urgently in the development of rural economy and rural finance in our country.They are also the key to understand rural finance to support rural revitalization.Answering the above-mentioned basic questions will not only help to evaluate the implementation effect of our country’s policies to promote rural financial development,but also dynamically understand the laws of rural economic development from the perspective of financial support for rural revitalization.Based on the agricultural and rural development theory,financial capital theory of Marxist economics,and rural financial development theory,this article comprehensively analyzes the inevitability,main content and tasks of implementing the rural revitalization strategy,as well as the process and current situation of rural revitalization in my country,and analyzes the necessity of financial support for rural revitalization,and analyzes the financial demand of rural revitalization and the supply of rural finance to rural revitalization from the two aspects of demand and supply.Empirical research on the financial support of rural revitalization from two dimensions of time and space.Based on the analysis of the theoretical mechanism,using the rolling regression model and the TVP-SV-VAR model to empirically study the time-varying effects of rural finance development on rural revitalization from the perspective of rural economic development and farmers’ income.At the same time,using inter-provincial panel data of 30 provinces and cities in China from 2002 to 2017,a PVAR model was constructed to empirically study the rural revitalization effect and regional differences of rural financial development.The study found that the development of rural finance has a positive and promoting effect on rural economic development,rural residents’ income,and rural residents’ consumption.Moreover,the development of rural finance has the strongest effect on the income level of rural residents,followed by the effect on rural economic development,and the weakest effect on the consumption level of rural residents.Rural financial development can promote rural economic development and increase farmers’ income levels from the two levels of supply and demand,as well as financing and risk management,and has obvious time-varying characteristics.From the perspective of time difference,the intensity of the influence of the new era is the greatest,followed by the transfer of rural surplus labor,and the lowest in the early stage of rural reform.The impact of rural finance on the rural economy has shown a gradual increase in these three periods.From the perspective of the difference in term,the short-term effect is the weakest,the medium-term effect is strengthened,and the long-term effect is the strongest.The influence of rural financial development on the rural economy and farmers’ income level is dominated by the medium-and long-term effect.From the perspective of regional differences,the eastern,central,and western regions present a step-wise pattern,with the eastern region having the strongest influence,followed by the central region,and the western region the weakest.From the empirical analysis,it can be concluded that there is an imbalance in the rural revitalization effect of rural financial development.This imbalance is reflected in the long and short term and between different regions,so it is necessary to achieve rebalancing.Financial support for rural revitalization should be based on basic system construction and long-term strategies.On the basis of qualitative research and quantitative research,this article takes the rural financial institutions in Heilongjiang and Jilin provinces in the Northeast as examples to analyze the relevant experience of financial support for rural revitalization since the implementation of the rural revitalization strategy,and put forward ideas to achieve an effective connection between poverty alleviation and rural revitalization.Finally,the path selection and countermeasures of my country’s financial support for rural revitalization are put forward.Including the establishment of a complete financial institution support system,policy support system,financial ecological environment,risk sharing mechanism,etc.