Theoretical And Empirical Research On The Financial Support Of Rural Indusrtial Structure Adjustment

Rural industry development is the foundation of promoting rural ecnomicdevelopment. Optimization and adjustment of rural industrial structure and improvingrural industry level are benificial to change the dual economic structure and realize thecoordinated development of national economy. If the rural industry structure cannot beimproved,the sustainable growth of rural economic will hardly be realized.However,rural industrial structure adjustment can hardly do without the support of large capital,and finacial support is the major force for solving funding problems. It is a significantissue for us to play the role of financial support, to impulse the rural industrialstructure adjustment, and to promote sustainable development of rural economy.This paper focuses on the theme of the effect of financial support on the ruralindustrial structure adjustment, it’s based on the scientific knowledge of IndustrialEconomics, Agricultural Economics, Management and Econometrica, etc. It followsthe principle line of financial support, and builds up the theoretical frame of financesupporting the rural industrial structure adjustment. This paper analyzes theconnotation of rural industrial structure adjustment and financial support respectively,proposes the objectives of rural industrial structure adjustment, and then analyzes therelated theory about industrial structure adjustment and rural finance. On that basis，thethesis analyzes the channels and mechanisms about financial support affects theadjustment in rural industrial structure, then builds the relevant theory model. Throughdeep Analysis, financial support has important influence on rural industrial structureadjustment.Meanwhile, this paper aslo demonstrates the status quo of finance supporting therural industrial structure adjustment, and describes the situation of financial supply anddemand. We find some uncoordinated elements in financial supply and demand, andthen annayze the causes. Using EVIEWS software to perform statistic test for financialsupport influences in rural industrial structure adjustment between1978and2010, tofurther understand the practical function about them, at the same time, calculating thespecific contribution of financial support. Empirical findings show that, financialsupport can promote the rural industrial structure adjustment by changing financialinterrelations rate and rural savings rate, but the impact is not ideal, the reason for thatis closely related to the low level of rural financial development and rural savings. In order to promote a further adjustment to the rural industrial structure, changethe non-ideal status of financial support and raise standards of rural financialdevelopment and rural savings, the relative rural financial refrom measures have beenput forward from five aspects: building good financial support environment, expandingsource channel of financial resources, innovating service functions of financialinstitutions, improving the efficiency of the allocation of the financial resources,perfecting a line of risk-sharing system.