Study On The Mechanism Of Rural Financial Transfer In China

China has made great achievements since the reform and opening up, but China’s "double structure" is still very serious between urban and rural areas at the current stage."Three rural problem" which is composed of agriculture, rural areas and farmers has been a serious problem that the party and the government need to face,"three rural problem" is caused by many reasons, such as the "double structure" between urban and rural areas, collective land ownership, financial support for agriculture and rural financial suppression. The over transfer of rural financial resources is the main reason, this paper mainly research the rural finance development and the mechanism of rural finance transfer. The finance system reform in rural areas of China, finance transfer is the objective existence and can’t be avoided, this is mainly because the reform of the whole rural finance system of China is a kind of compulsory system reform under the leadership of the government, and this system reform is administrative and noncommercial. Administrative intervention and rural financial transfer have a very important relation, rural finance reform that the government which based on the certain goal dominants certainly involves redistribution of public resources, and that in the rural finance transfer, who won the finance transfer? How is the mechanism of rural finance transfer? How to better promote the sustainable development of rural economy by promoting the positive rural finance transfer? The study on these problems is very important and necessary.Based on definition of the concept of rural finance transfer, the paper firstly has carried on the detailed description and analysis on the process of finance system reform in rural China, secondly explores the rural finance transfer phenomenon during the development of rural finance development in China, and finally studies the channels and the conduction mechanism of rural finance transfer. On the basis of qualitative analysis, this paper empirically studies the conduction mechanism of rural finance transfer using the1256county of China (no county city) from2006to2011based on the fixed effect panel data model. Based on the combination of qualitative analysis and the quantitative analysis, this paper put forward the corresponding policy recommendations to promote the growth of rural economic.