A Study On The Relation Of The Western Rural Finance And Economy Growth

As the western, the rural finance and the rural economy growth are very important to our country's economy. The rural finance and the rural economy growth have made the tremendous contribution for the national economy development. Since entering the new stage of development of rural finance and rural economy growth at the end of 20 century, the strategic adjustment of agriculture and the rural economy structure has become the central task of the rural finance and the rural economy. The rural economy growth needs massive fund accumulation and investment which cannot live without support from finance. This thesis utilizes the development economic theory, the financial development theory, unifies the development course of our country's rural finance and economy and analyzes the scale, the structure and the efficiency of the western rural finance development. The thesis points out that the monetization degree of the western rural economy is deepening gradually, but the financial structure still has all sorts of problems. What's more, the rural finance system mainly undertook the function of fund mobilization but not fund disposition, and the efficiency is low. This is precisely the reason why the rural finance development lags behind. Then by establishing the panel data model, the thesis analyzes the correlationship between the rural finance development and the rural economy growth. And discover that there exists long-term stable positive correlation ship and the rural financial development has profound luence to the rural economy growth. The western rural economy growth prefer to depend on endogenous financing or non-regular financial support. In this foundation, the thesis analyzes the problem about the western rural finance support economy development, and propose four policy suggestions as followed: relax the market access limit to cultivate the rural finance competitive market; establish withdrawal mechanism to strengthen the market restraint to rural finance organization; define the property right of rural finance organization, consummates internal governing structure as well as optimizes the external environment of rural finance development.