The Development Of Rural Finance In Shandong Province On The Mechanism Of Action Of The Rural Economic Growth: Theory And Empirical Research

Rural finance generally refers to the financing activities in rural areas. Rural financial development has close relation with rural economic development. A favorable and adaptive rural financial system will support and guide the development of rural economy effectively. Contrary, it will restrict the normal development of rural economy. A great deal of theories and empirical researches have indicated that "financial repress" phenomenon existed in most of the rural areas. "Financial repress" incorporated that it was difficult for the farmers and agricultural enterprises to acquire the financial services what they need. Along with the deepen reform of rural economy, the contradiction between supply and demand of rural finance will be more obviously. The rural financial repress must be relieved then it can promote development of rural economy as well as the whole modern economy.Shandong province takes an important part in China for its agriculture and economic growth. The agriculture production value of Shandong is always at top of the whole country. Under the background of rural economic system reform, the paper chose Shandong as research object and aimed at studying the rural financial development's function mechanism to rural economic growth. The paper used describing and empirical method to analyze the current situation and the existing problems of rural finance in Shandong. Then the paper made an empirical test with the sample of Shandong to test the function mechanism. We discover that the rural financial development level in Shandong compared with rural economy development lags behind obviously, it is the important factor of restricting the rural economic growth of Shandong that the rural finance is developed insufficiently. In the end, the paper put forward the policy recommendations as to how to deepen the rural financial reform of Shandong. The full text is divided into six parts:The first part: Introduction. This part introduced the theoretical and realistic significance of selecting topic, research line, research method, innovation and the shortage of this paper.The second part: Theories about financial development and economic growth. This...