Comparative Study On The Impact Of Financial Service To Coordinated Development Of Industry With Agriculture

This paper is a comparative study about financial services impact on harmoniousdevelopment between industrial and agricultural. Since the implementation of the westernopen policy, the western economic entity has achieved rapid development. However, Theimbalance of industrial and agricultural, which took two big departments of the entityeconomy, economic development is more and more outstanding and there is a growingtrend. With the deepening marketization degree, financial service plays a pivotal role inindustrial and agricultural economy development. This paper focuses on the comparativestudy of the influence of financial services in the western region for industrial andagricultural economic development, In order to realize the coordinated development ofindustry and agriculture. First of all, this article refers to theories and literature review ofprevious and theoretical analysis of relationship between financial services andcoordinated development of industry and agriculture. Secondly analyzes the presentsituation of western financial services and agriculture economy and make a comparativestudy. And then selecting the appropriate economic metrics, using the relevant data of1998~2012, Using Panel stationary Tests, Granger cause and effect examination, PanelVAR model GMM estimation, Impulse response function analysis and Finite differencemethod studied the impact of financial services for the development of industry andagriculture. On this basis, put forward to improve the quality of financial services topromote the coordinated development of industry and agriculture in western region.Through the empirical analysis we obtained the following conclusions. First, therewas significant interaction between the development of financial services and industry inwestern, but there is no obvious interaction between agricultural development. Second,the agricultural economy on financial service responses is significantly greater than theindustrial economy reaction. Financial services contributions to the industrialdevelopment rate have continued to improve and Has the stability and persistence in time.But the influence on agricultural development increasing in the short term, followed bysignificantly decreasing, it’s lasting effect is weak. Western agricultural economicendogenous accumulation ability is strong, and the industrial economy more vulnerable.Third, west the financial service promoted the industry and agriculture economycoordinated development. Financial services to the industrial and agricultural economicdevelopment significantly positive role in promoting. But the positive role of the industrial economy is significantly less than the positive effect on the agriculturaleconomy. Namely, the marginal effect of financial services to promote industrialeconomy is less than the marginal effect on agriculture.On this basis, put forward specific policy recommendations. Firstly, optimize thefinancial services industry structure, strengthening the support to the "three rural" credit.The government should formulate proper industrial policy according to the localeconomic structure and the resources talent and so on the condition. And actively guidefinancial institutions to increase the "three rural issues", the small and medium-sizedenterprise support. Deepen the reform of rural financial system, solve the problem of lackof financial services in rural areas. Second, adjust the regional financial services structure,allocate credit resources rationally. Should establish regional differences of monetarypolicy, and through the establishment of segmentation of financial policies and innovativefinancial tools, business, means to meet the needs of different regions’ demand forfinancial services. Thirdly, vigorously develop the financial sector; improve the quality offinancial services. On the one hand, develop financial sectors fully, and improve the levelof financial services. On the other hand, need to expand agricultural enterprises andindustrial scale of high-tech industry and financial services industries. Control the "excesscapacity","repeated construction" sector of the financial services industry strictly. Inorder to promote the industry and agriculture coordinated development, In order topromote the industry and agriculture coordinated development, simultaneously needspeed up the state-owned enterprise reform, and improve the finance grade of servicepractically. Finally, establishes the financial service promotion industry and agriculturecoordinated development the mechanism gradually. Strengthening human resourcedevelopment and management for coordinated development of agriculture and industry,while accelerating policy innovation of the system of coordinated development ofagriculture and industry to provide quality external environment, and building up aninteractive platform for coordination of financial services for agricultural and industrialdevelopment.