The Research About The Impact Of Rural Finance Development On Rural Industrial Structure Upgrading Of Gansu Province

Rural industry as an important force to promote rural economic growth, the upgrading of rural industrial structure has a great significance to improve the level of rural industries and promote rural economic sustainable development. Upgrading of rural industrial structure can not without the support of funds, and funds are mainly produced in rural finance activities. Gansu province as one of the less developed provinces in the western region, rural finance has made an important contribution to promote rural industrial development and upgrading of rural industrial structure, but currently the level of rural financial development in Gansu province in general is not high, it partly restricts the upgrading of rural industrial structure, then it is an important issue currently we must to face is how to promote the development of rural industries and the upgrading of rural industrial structure of Gansu Province by developing rural finance.Firstly,the article summarizes the theories about the relationship between financial development and industrial structure of domestic and abroad, then elaborates the process and mechanism of rural financial development impact on the rural industrial structure upgrading bases on the theory of rural finance development and the industrial structure.Then selects the indicators to representative the level of rural development and upgrading of industrial structure of Gansu Province,uses the ADF test, cointegration test, Granger causality test, VAR model to study how the rural finance development of Gansu Province affects rural industrial structure upgrading bases on the mathematical model.Empirical test results show: scale of rural financial development and rural loan deposit ratio to rural industrial structure upgrading generate active support role, while rural savings rate has a negative effect.Overall, the rural finance development of Gansu Province has certain effects to the rural industrial structure upgrading, but these effects are not apparent,the rural financial development support to the rural industrial structure upgrading is inadequate.Thus, this paper analyzes the restraining causes of therural finance development of Gansu Province restricting the upgrading of industrial structure.Finally,based on these causes,it proposes some relevant policyrecommendations on how to improve the rural finance development of Gansu Province to support rural industrial structure upgrading.