Analysis Of The Economic Growth And Financial Support In The Rural Area Of Gansu Province

The relationship between economic growth and financial development has become an important problem in financial development theory with concerns of scholars from all countries. The present research overseas mainly concentrates on countries, focusing on the analysis of cause and effect between finance and economy. The home research is mostly based on the related data of the country. Recently, there are more and more published papers on the relations of regional finance and economy, but as for the empirical analysis of the relationship between economic development and financial development in the rural area of Gansu Province, there is a limitation. Therefore, it is of great significance to make analysis on the physical truth of Gansu Province.This paper analyzes the problem of economy and financial support of the rural area of Gansu Province on the understanding of economic growth theory and financial development theory. Firstly, through analyzing the present situation of economic development of Gansu Province, it is found that in the process of economic development of the province, the shortage of fund has become an important restricting factor for rural economic growth. At the same time, through a further analysis of the present financial situation of Gansu Province, a weak financial support in the process of rural economic growth has been revealed, such as the monopoly of Rural Credit Cooperatives and its insufficient management, the decrease of financial service in rural economic development of the Agricultural Bank of China due to its commercialized reform, the limit of customers of the Agricultural Development Bank of China, and the non-stander of the illegal financial institutes, and so on. All these aspects lead to the fact that the present financial system cannot meet the need of fund of the rural economic growth. On the basis of this, via an empirical analysis of economic growth and financial support in the rural area of Gansu Province through the Grey Relational Analysis, this paper has drawn three conclusions: First, finance has been a crucial influencing factor in the rural economic development of Gansu Province, especially in the agricultural development. Second, there is a close relationship between rural finance and economic development with different influences. Third, the scales of finances and loans in the rural are main factors influencing the income of the farmers. To solve the problems in the aspect of financial support for economic growth in the rural area, this paper, on the stand of the present financial system of Gansu Province gives six suggestions from the aspects of financial supply and demand: Reposition the financial institutes, emphasize the stated financial institutes, give aid to the cooperative financial institutes, standardize the non-governmental finances, develop a competitive market system of the rural fiancés, and expand the capital market in the rural area.