The Research Of The Impact On Rural Economic Growth By Rural Credit Cooperatives

With the accelerated pace of China's financial reform process, the need for research and exploration in the area of rural financial development and economic growth in rural areas is urgent, the main task to lift the development of rural financial problems is to improve rural credit cooperatives. With the deepening of economic reforms in rural areas, contradictions between supply and demand become more prominent, rural credit cooperatives almost become the sole provider of loans, so the development of rural credit cooperatives in rural economic growth becomes essential. In this paper, deep study of the development of rural credit cooperatives and rural economic growth is contributed to improve rural finance environment for reconstruction for a very long period of time of the current and future rural financial policies, also can promote China's agriculture, rural development and sound effectively improve the living standards of farmers, and ultimately achieve the coordination of China's rural economy, sustained and rapid development.This paper selects rural credit cooperatives as an example, what about their level of development? How the mechanism embodys? How to deepen reform of rural credit cooperatives to promote its role in promoting economic growth? It is this conception of the fundamental starting point.This paper hopes to research rural credit cooperatives and economic growth in rural economic development from the point of rural finance issues, which has important practical significance to further enhance role of rural credit cooperatives. This paper uses the existing theory of resources to apply research findings in China's national conditions as a starting point, makes full recognition of China's rural credit cooperatives and rural economic growth and its special relationships, bases on macroeconomic background, makes a descriptive analysis of both development status, and then analyzes the development process and the reasons for the problems and mechanisms deeply. This paper follows the process of knowledge creation, in accordance with the theory-Evidence-General Economics Research Strategy to commence the study, fuse standardized analysis and empirical analysis, qualitative analysis and quantitative analysis. Using quantitative analysis method for 1987-2008 datas of rural credit cooperatives and rural economic growth, the results indicate that China's rural credit cooperatives indeed affected the rural economic growth, and this also proves the significance of this paper. From the perspective of the source of funds, deposits in rural credit cooperatives promote the role of the rural economy, but from the perspective of funds, loans of rural credit cooperatives failed to promote rural economic growth, even hindered the growth of economic output in rural areas, indicating that in the rural areas loans may just exist formally, loans are not used in the actual orientation of the non-agricultural fields due to the low efficiency of rural credit cooperatives.This distorts rational allocation of resources in rural areas, and even leads to large accumulation of non-performing loans. In addition, the total GDP of rural economic can not promote deposits and loans of rural credit cooperatives, which shows our current rural economic growth and development of rural credit cooperatives did not play the role of induced demand, with the new institutional economics related knowledge can be interpreted as the obstacles between China's rural credit cooperatives and rural economic system which may from the macroeconomic policies of the rural credit cooperatives or from their own series of problems.According to the empirical conclusions, we should not only analyze the promotion of rural credit cooperatives, but also summarize the reasons for the obstacles, these two mechanisms are the key rural economic development issues. Based on these problems, this paper proposes a series of policy recommendations from external and internal angles seperately.