The Influence Of China's Rural Financial Development In Agricultural Economic Growth

Agricultural and the rural economy is an important part of our national economy. Its development plays an extremely important influence on China's economy. With the advancement of the country's industrialization and national economic development, the share of agriculture in the national economy gradually declined. But agriculture as the basis for the national economy, it will become more important on the national macro-control and relations with other industries. Since the beginning of rural economic restructuring in eighties of the twentieth century, agriculture obtains a faster growth. However, growth has slowed down in recent years. The problems of rural areas, agriculture and farmers become increasingly prominent. Three rural issues have become the most important task of the State Council. In today's society, finance and economic development is closely related. When the time the agricultural economy was concerned, rural finance issues get more and more attention. Agricultural economic development requires a large amount of capital accumulation and re-input. That can not do without financial support. Since the founding of China, rural finance has undergone several reforms and it has been greatly developed. But in support of the agricultural economy, there are still some problems.According to the theory of financial development, financial development and economic growth are closely linked and mutually influence. Therefore, this article will be in rural finance and agricultural economy combined, from the perspective of the development of rural finance system, in-depth study its impact on the growth of the agricultural economy. This article mainly uses multivariate co integration analysis to research the relationship between them empirically. It tries to interpret problems of agricultural economic growth in China from the rural financial aspects. This paper mainly includes the following five parts. Chapter I is an Introduction. It mainly expounds the research background and significance, and then describes a theoretical tool and research methods, the basic ideas and logical structure, and innovation point of the article. ChapterⅡis literature review. It contains an overview of the theory of financial development and the research of domestic and foreign scholars. ChapterⅢdescribes the development of China's rural financial history and current status; at the same time, choose rural finance and agricultural indicators to do descriptive statistical analysis. A preliminary analysis of rural finance in supporting economic growth, there is the phenomenon of financial repression. ChapterⅣverifies the relationship of rural financial development and agricultural economic growth from the perspective of empirical tests. Start by describing the role of rural finance mechanisms in the agricultural economy, and then introduced the method of empirical analysis, followed by the specific empirical test, and the corresponding economic explanation of empirical results is given. This paper concluded that the existence of China's rural financial repression, shortage of capital supply of agricultural credit. ChapterⅤis the policy recommendations. In this paper, along the idea of the increase in agricultural credit earnings of financial institutions and the reduce of the cost of agricultural credit to increase the supply of agricultural credit funds, reduce rural financial repression and promote agricultural economic growth.Innovation of this article is mainly reflected in the refinement of research on the issue. From the perspective of rural finance, this article studies its role in promoting agricultural economic growth. And it focuses on the study of whether China's rural financial development in economic growth in agriculture has a significant influence. Basic on a large number of statistics, this article distinct the rural and agriculture-related data, and it focus on the influence on agricultural economic growth caused by the agricultural sector in rural finance. Overall, this study will help understand the relations between rural finance and agricultural economic growth. It will also help understand the function mechanism to achieve the purpose of higher agricultural yields, farmer income growth, as well as rural economic development. At the same time, this study verifies the theory of financial development by using Chinese data, which will help enrich and develop the theory of financial development.