Empirical Research On The Influence Of Rural Financial System Vicissitude On Agricultural Economic Growth

Agriculture is the foundation of national development,in order to promote the rapid development of the agricultural economy ,China reforms the agricultural system many times after founding,and achieves significant results. Economic development is closely related to the financial system, only perfect financial system can promote economic development effectively, and agricultural development is inseparable from an adequate supply of funds.In order to develop agriculture and provide farmers with diversified financing channels, our country implemented different rural financial system at different times.China's rural financial system began to form after the establishment of rural credit cooperatives in 1951, because the initial management is chaotic, and the Agricultural Bank revoked and reset several times, the rural financial system is not perfect, and can't support for the agricultural economy enough. After reform and opening up, China's rural financial system reformed, recoveried the Agricultural Bank of China to formulate and implement policies, and reformed the rural credit cooperatives interior. As the establishment of the Agricultural Development Bank of China in 1994, Agricultural Bank,began to commercialization reform, the rural financial formed a system including commercial, policy and cooperative finance. In 1997, the National Conference on Financial Work is the turning point of financial history, and we reformed the rural finance further. in 2003 the rural credit cooperatives reformed their management mechanism, property rights system and organizational forms, rural credit cooperatives'internal structure was increasingly perfect, and provided strong credit for rural development, becoming the mainstay of rural finance.The representative economists of New institutional economics is Coase and North, they think institutional change only happen when expected earnings is more than the cost, change is a gradual process. However, because of China's national conditions, the rural financial system wasn't bottom-up change from special requirement,it's the mandatory institutional changes leaded by the government. Although the rural financial system is increasingly perfect, but it reflect the will of the state,don't from the requirement of rural subjects, cann't meet the practical needs of rural and farmers, and the rural financial institutions'Management quality is poor. In addition, because our country's regional difference is very significant, the national unified rural financial system change to cann't meet different needs of different regions, causing individual districts'rural financial system cann't provide financial sevices from actual situation,even inhibit the development of the agricultural economy.Many domestic literature has expounded the influence of rural financial changes theoretically, for inspecting the influence of rural financial system vicissitude to various regions more accurately, we study the relationship between the rural financial system vicissitude and the agricultural economy from empirical aspects. After illustrating the rural financial system vicissitude's process, characteristics and existing problems, we selecte six representative provinces from countrywide ,they are zhejiang, jiangsu, hunan, henan, jilin and gansu, analyze the index data acording to the rural financial system vicissitude's process. The empirical analysis build a regression model based on Douglas production function, join the index representating institutional factors as a improvement of the original function, , and test the stable relationship and Granger causality, analysis the influence of national rural financial system vicissitude on agricultural economy development of these province from the data. The empirical results show that the provinces which having positive influence on the agricultural economy are two in the second phase and increased to four in the third phase, with the deepening of the reform, the rural financial system vicissitude have a outstanding achievement, the agricultural economy of some parts have certain stimulative effect, but cann't promote the agricultural development in all regions, some regions due to the inadequacy in reform direction or implement process, but inhibit the growth of the agricultural economy. This article research the influence of rural financial system vicissitude from the empirical aspects, to make up the lack of empirical studies, perfect rural financial system vicissitude theory, also has practical significance to improve rural financial system of the study area.