Study On The Financial Resources Allocation On The Background Of Coordinating Urban-Rural Development

China is a large agricultural nation. After30years of reform and opening up, China’seconomy has made a great progress, but the huge economy summation can’t cover thereality that area economy is unbalanced developed. Nowadays the unbalanced economicdevelopment and the widening gap between urban and rural have become one of thedifficult problems which have bad influence on the economic development of our country.The issues concerning agriculture, countryside and farmers is always the key that restrictsthe social and economic development. So coordinating the balanced development ofregional economy has become an important goal of current society. In the third PlenarySession of the16th CPC Central Committee, our party proposed the “concept of scientificdevelopment to adhere to the people-oriented and comprehensive, coordinated andsustainable” and "five plans" requirements. And coordinating urban and rural developmentis the major strategy of our party and government to solve the three issues problems and tospeed up the construction of modern country. Economy decides finance, and finance hasreaction on economy. As a special resource finance has played a more and more obviousrole in economic growth, and it even determines the lever of economic development incertain extent. In order to promote the whole economic development of our country, first ofall, we should speed up the economy and construction of countryside. The chief step is toallocate the financial resources reasonably and to play a promoting role to economicdevelopment with financial resources. It has a great significance to adjust the dualeconomic structure, and to realize the sustained, rapid and sound development of ournational economy.This paper defines financial resources and puts forward approaches of efficientallocation of financial resources and measuring standard on the basis of major views of thescholars at home and abroad. Besides, this paper analyzes the necessity of optimizingfinancial resource allocation between urban and rural areas. After comparative analysispresent situation of financial resources allocation in Shandong province between urban andrural areas, this paper conducts empirical test to differences of financial resource allocationand economic development relationship between urban and rural areas. Then I find out the reasons that restrict different financial resources allocation between urban and rural. And Iput forward several suggestions to optimize the allocation of financial resources betweenurban and rural areas in Shandong province.The empirical results show that finance plays a fine promoting role to economy inurban area in Shandong province. But mutual promoting mechanism between financialresources and economy is not set up and come into play in rural area. So there are severalways to optimize the allocation of financial resources between urban and rural areas. Weshould enhance the support to agriculture of our government and guide policy capital flows.We should complete competition mechanism of rural financial market to create a finecredit environment. Only in this way can it forms mutual promoting mechanism betweenfinance and economy. Then it can speed up the economic development in rural area,gradually narrow the economic gap between urban and rural and finally achieve the targetof unified development between urban and rural areas.