Study On Finance Supporting Rural Economic Development In Shangluo Area

As the impact of environment and geographical position, Shangluo area of ShanxiProvince has been actively developing characteristic agriculture. The development of economycannot be separated from the financial support, to some the extent, the financial support has beenrestraining the economic growth from the current physical truth, especially for the outflow of funds whichhas been limited the development of rural economy. Therefore, according to the actual situation, researchsituation of a regional financial repression and analysis the degree of financial support, has vital theoreticaland realistic meanings.The paper firstly makes a brief analysis of Shangluo rural economic development and rural financialsupport, and then arranging the time series data, establishing VAR model to test the relationship betweenrural economic growth and rural financial, the conclusion is: the Shangluo area high economic monetarydegree, there is a long-term equilibrium relationship between the rural finance and the development of ruraleconomy, but the financial structure is still a problem, and the rural financial system is mainly responsiblefor the mobilization of funds rather than funds allocation function, large capital outflows out through theformal banking, financial allocation efficiency.Based on the existing problem between Shangluo rural economic development and rural financialsupport, it can draw lessons from the international experience of rural financial system construction, andthen targets to learn the experience from that. In terms of return of funds, the rural financial competition,guarantee system construction, we conclude how to improve rural financial support, so as to really realizethe economic development in Shangluo area.