Impact Study Of The Central Region Of Rural Finance Development Of Its Economic Growth

Central China is economic center and important market of our country. It plays an important role in China's regional economic development. Rural economy regard as an important part of Central economy, its persistent, fine development has a supporting effect on the Central economy. For rural financial development is closely related to rural economic growth, a favorable and adaptive rural financial system will support and guide the development of rural economy effectively. However, a great deal of theories and empirical researches have indicated that "financial weakening" and "financial repression" phenomenon existed in most of the rural areas. Along with the deepening reform of rural economy, the contradiction between supply and demand of rural finance will be more obviously. So trying some financial methods to promote rural economic growth of Central China seems necessary.Based on the comprehensive hackling domestic-overseas research achievements, the paper, by using financial development and economic growth as well as rural financial development theories, analyzes the development situation of rural finance and rural economy in Central areas. It reveals that Central China displays the "economic collapsing" and "financial weakening" phenomenon. And then, by making use of traditional production function as the frame and taking an advantage of Panel Data, by means of unit root tests, cointegration tests and error correction models, I empirically analyzed the influence of rural finance on rural economic growth in Central areas, from which I found that level of rural financial development of Central China was still unfavorable. That is to say, the promotion effect of rural economic growth was not brought into full play, existing somewhat "financial weakening" and "financial repression" phenomenon. Finally, from the rural financial development perspective of promoting rural economic growth in Central areas, the paper proposed four suggestions: firstly, promoting rural financial deepening by mainly using the mode of supply-leading; secondly, creating rural financial system to remedy improper systematic arrangements; thirdly, creating rural financial business by taking lessons from the mode of Grameen; at Last, increasing website coverage and carrying out the diversity of financial institution.