Study On The Rural Finance Deepening Of Xinjiang

In the recent years, the rural finance of Xinjiang province which has made great progresshas played an important role in the allocation of financial resources and support of economicgrowth in rural areas of Xinjiang Province. But the financial repression in the development ofrural finance of Shaanxi Province is still a very serious problem. It has constrained thedevelopment of rural economy in Shaanxi Province.Based on the domestic and foreign research, this paper has generally summarized thetheory of financial deepening. Combining with the research needs of this article, we definedthe concept of financial deepening：the financial deepening is a Dynamic process. In the lowlevel of the economic development stage, the financial deepening is the Improvement offinancial functions; in the high level of the economic development stage, the financialdeepening means financial liberalization and the interest rates is market-oriented. Then thispaper described the situation of financial repression in rural area of Xinjiang Province, andconcluded that the rural finance of Xinjiang is of the characteristics of financial repression,which is reflected in the imperfect rural financial institution systems, Insufficient supply offinancial services, the outflow of rural capital and the loss of financial support of ruraleconomy. And we gave an theoretical explanation of the rural financial repression of Xinjiang.At the same time, we constructed the composite indicator of the ability of financial deepening,and put the single indicators measuring the financial deepening into a relative completesystem for an empirical analysis. The results show that financial aggregates largely driven thepace of rural financial deepening and play an obviously role in the process of financialdeepening. The financial structure and the financial efficiency not only failed to promote therural financial deepening process of Xinjiang, but hindered the deepening of rural financial.Therefore improving the structure of rural financial in Xinjiang, expanding the coverage ofrural financial institutions, improving the efficiency of rural financial institutions andpreventing the outflow of rural capital in Xinjiang, are of an important significance to thedevelopment of financial deepening. Finally, this paper analysis the practice and theexperience of financial deepening, combing with empirical conclusions, and then gives thepolicy recommendations of eliminating the financial repression in rural ears of Xinjiang.