Study On Supply Mechanism Of Rural Way In Underdeveloped Areas

China has the most population around the world and also is one vast agricultural country, so agriculture is the source of power to national economy and the foundation of the country and nation’s security. However, the urban priority development strategy has been implementing since the nation foundation, resulting in the dualistic economic structure in urban and rural areas. The dualistic economic structure in urban and rural areas creates the dualistic supply system of public-goods. Rural way is the most important infrastructure and quasi-public good in country, nonetheless there is always insufficient rural way in undeveloped country and even there is only one rural way to outside in some undeveloped areas. The short supply of rural way affects the development of country and the construction of new socialist countryside. Central government and local governments had always been the main financing providers, but there is still large financing gap in the supply of rural way. The financing gap intensifies the imbalance between supply and demand, even causes the quality decline. After tax reform and abolishing agricultural tax, local governments have limited financing to support the supply of rural way in undeveloped country. In the past, the government inspiring system had little consideration on actual demand of local peasantry leading to the mismatching and deviation between construction and demand.The dissertation mainly analyzes domestic and overseas research status on rural way, the economic attribute, the theory of balanced supply and supply pattern. Also the paper describes the status and the problems in the supply of rural way from S city and the whole country, and gives some suggestions to solve these problems. In order to remedy the drawbacks of government inspiring system, the government should give play to the villagers’ autonomous organization and form the demand expression mechanism to accelerate the supply of rural way in undeveloped areas.