The Coordination And Its Measurement Of Chinese Rural Financial System

This article focuses on coordination of the rural financial system. Assistant with system theory, we treat our rural financial system as an organic system. Why is the rural financial system independent out of the Town's financial system? Starting from this simple proposition, We review and analysis the history of China's rural financial system reform and get a qualitative conclusion that China's rural financial system is not harmonious. But, how to describe the coordination level of the rural financial system in quantity? This article use a measurement model which is a concept from Mathematics to conduct an empirical research. Based on the empirical research, this article points out the defect of efficiency of Chinese rural financial system. As a policy recommendation, the article puts forward a "ternary structure" model of expected coordination Pattern. In the end, this article, also, explains the efficiency advantage of this expected coordination Pattern with a comparative static analysis method.This paper consists of five parts. The first part, also the chapter one, introduces the background, logic, methods and structural arrangement of this study. The second part reviews history of rural financial reform in china and relative literatures home and abroad. Based on part one and part two, we can research rural financial system on institutional perspective and measure the coordination level of Chinese rural financial system with an empirical model. This is main task of part three which is made up of chapter three and chapter four. PartIV is one suggestive chapter. Intending to improve the efficiency of current rural financial system, we put forward a expected rural financial coordination pattern which benefits from experience in rural finance of developed countries and developing countries such as American, Germany, Indian and Bangladesh. In the last partⅤ, we state the basic conclusions of the study, and also point out insufficiency during demonstration and future research directions. The basic viewpoints can be stated as following. First of all, the empirical research (1981-2007) have shown that the reform on rural finance have not made the rural financial system become more coordination. No evidence can support the efficiency of current rural financial system. What's more, the current rural financial system mainly reflected lack of efficiency rather than the size. Efficiency gains should be principal goal of future rural financial reform. Last but not the least important, one effective rural financial system relies on a powerful and executive policy-oriented rural finance as its engine. The "ternary structure" expected coordination pattern with cooperative finance as its foundation, commercial finance its main body and policy-oriented finance its engine is a cross-overlapping symbiotic system which has obvious efficiency benefits.