The Research On Rural Financial Ecological Of Shandong Province Based On Catastrophe Theory

Ever since the third plenary session of the11thcentral committee, great changeshave been witnessed in China, such as economic strength, people’s living standard,international status, etc. Benefitting from the reform and opening policy, rural areas inChina, which lag far behind the booming cities, have made remarkable progress in recentyears. For example, driving by advantages of coastal city, communication, resources,labor, etc., people in rural areas in Shandong have basically enjoyed a fairly comfortablelife. At present, the rural economy in Shandong has been challenged by the structuraltransformation from the dispersed traditional agriculture with low technological contentand additional value to the centralized modern one with high technological content andadditional value. Moreover, there still exist many issues in the structural transformationsuch as how could the rural financial institution better promote the development of thelocal rural economic entities; how could the local rural economic entities utilize the localfinancial resources more efficiently and how the could government and society providebetter service for the development of local economy and finance.Financial ecology is the concept first advanced by China’s scholar. In2004, ZhouXiaochuan advanced this concept systematically and formally for the first time and thisconcept has aroused wide concern among many scholars since then on; at the same time,the domestic scholars have made a lot of research on it. Because of the urban-rural dualstructure in China, scholars generally divided the research on the financial ecology intothe urban financial ecology and the rural one according to the research objects. The ruralecology refers to the interactive system in the development process of the rural economy,which is composed of the rural economic and financial entities and other factors whichaffect the two entities like economy, society, government, law, faith, etc. Therefore, theresearch on the rural financial ecology could better promote the interaction of the ruraleconomy, finance, society and other factors and promote the development of ruraleconomy more efficiently. In this sense, this paper is meaningful for the rural economy instructural transformation. Based on the development facts of rural areas in Shandong, this paper takes the ruralfinancial ecology in Shandong as the object. The first part of this paper advances thethree main components of the rural financial ecology in Shandong on the basis of theprevious scholars’ research and makes research on relation of the three components. Thesecond part analyzes the status of the three main components and implementspreliminary empirical research on the relation of economy and finance. In the process ofmodel building, this paper selects the catastrophe theory and progression for modelbuilding and mainly utilizes the application of the catastrophe theory in themulti-objective decision. On the basis of lateral research on the six provinces in EastChina and the empirical research on the seventeen cities in Shandong, many advantagesand issues of the rural financial ecology in Shandong are discovered. And the last partproposes the optimization measures and suggestions for improving the rural ecology inShandong based on the facts.