Study On Financing Channels Of China’s Rural Road Construction

Rural road means transportation infrastructure providing peasant massesconvenient, which is important infrastructure related to economic and socialdevelopment in rural areas, and also fundamental guarantee to promote agriculturaldevelopment, maintain social stability in rural areas, and speed up the construction ofnew socialist countryside. With the growing demand and expanding scale of China’srural road construction, the serious shortage of funds becomes a bottleneck of restrictingfurther development. Therefore, analyzing and researching the problem of rural roadconstruction financing channels in-depth have important theoretical and practicalsignificance to provide a viable solution to effectively solve the problem of rural roadconstruction funding gap, to promote the smooth development of the rural road topromote the deepening of reform and opening up in the new period, and to acceleratethe transformation of development mode.The study of the financing problems of the rural road construction, guided by thetheory of public goods theory, the theory of externalities, the finance theory, and relateddisciplines such as a summary of China’s rural road infrastructure construction financingcourse, the financing of the status of China’s rural road construction analysis; The ruralroad development of Xiushui according to the statistical data and survey data,quantitative estimates of rural highway construction funding gap. Different countries,different regions of the successful financing experience combing and draw inspiration;proposed ideas and suggestions to optimize the existing financing channels andinnovative financing mechanisms, based on the status of domestic and internationalexperience of China’s economic and social development. In order to establish a " soundgovernment-led, social participation and market operation "financing mechanisms, andprovide a theoretical basis for accelerating the development of rural road construction.The main contents of the study include:1. To define the concepts and attributes of rural roads.2. The study of the history and current situation of rural road constructionfinancing.3. Study on the Xiushui County rural road construction financing channels for thestatus quo and the construction of the funding gap. 4. A comparative study of domestic and international experience in the financingchannels of rural road construction.5. How to optimize and expand existing rural road construction financing channelsand make relevant recommendations.The main conclusion of the paper is:1. Government should play a leading role in rural road constructionRural road is a public infrastructure which will bring benefits for the broad massesof peasants, with strong externalities, so institutional arrangements for rural road canonly be led by the Government.2. Deficiencies of financing of rural road constructionThere are three main problems in rural road construction financing model: First,the central financial investment failed to effectively play a leading role; Secondly,weakness of local financial, especially the financial income of the majority of poor areas,they are unable to support rural road construction, resulting in the phenomenon of "administration without money "; Thirdly, other financing channels are narrow,restricting the development of rural roads.3. Financing channels of Xiushui County rural road construction need to beoptimizedCapital source of Xiushui County rural road construction is mainly the centralinvestment and other capital investment. Shortage of provincial grants and municipalmatching funds make the constructive unsatisfied. Economic backwardness and poorfinancing channels caused a severe shortage of funds for rural road construction; whilelack of supply of the rural road constraints economic and social development. Gapbetween the economically developed region is growing gradually. Therefore, we shouldactively explore expanding road of financing channels.4. Scalability of China’s rural road construction financing channelsTo achieve rural road construction required in the new period, to broaden itsfinancing channels, on one hand, in accordance with the shortcomings and deficienciesof financing channels, make optimization, which including the strengthening oflegislation to protect the financial investment, improving the rural financial system tosupport highway construction, establishing a service-oriented government to promotethe financing channels unblocked. The other hand, take a variety of market-oriented financing as a financial-oriented financing mechanism useful supplement, and introducethe main feasible way to analyze the characteristics, adaptability, operability andutilization of funds requirements, the use of cost, above the overall consideration ofrural highway construction and ecological environment, human environment, in order toachieve coordinated and sustainable development of the resources, environment andeconomic and social.