Study On The Relationship Between Rural Financial Development And Rural Economic Growth In China

In recent years,Document No.1 of the Central Government repeatedly mentioned the modernization of rural finance and rural development,emphasizing the role of rural finance in the rural economy.However,there are many problems of rural financial development,mainly as follows: low rural financial development level,lack of financial supply,the outflow of funds,the low proportion of township enterprises loans.Rural finance has little contribution to rural economic growth.Based on this situation,this paper studies the relationship between rural financial development and rural economic growth on the basis of the theory of financial development and economic growth.This thesis is divided into 5 chapters,the main contents of which are as follows:The first chapter is the introduction,which mainly introduces the background and significance of the selected topic,sums up the relevant literature about the rural finance and economic growth by scholars at home and abroad,and provides a good theoretical basis for the follow-up research and analysis.The second chapter is the theoretical analysis.It makes the definition of the concept of rural finance,and introduces the theory of financial development,the theory of rural financial development and the mechanism of how rural financial development promotes the growth of rural economy.The third chapter is the analysis of the present situation.First of all,the current situation of rural economy of our country is introduced based on the perspectives of rural GDP,the total output value of agriculture,farmers' income and rural fixed assets investment.Secondly,it introduces the current situation of China's rural finance.Rural areas of China has gradually formed the multi-level rural financial system,the formal financial institutions as the main body,the rural credit cooperatives as the core,covering rural commercial banks,policy banks and rural folk finance to supplement.However,there are still many defects in rural finance that the scale is small,the level of development is low.The rural funds has the problem of outflow,and the efficiency of rural finance is not high.At the same time,the proportion of commercial loans from the township enterprises is not high,and the rural financial structure needs to be optimized.Finally,it introduces the current situation of the relationship between rural finance and rural economy.It is found that the rural credit structure of our country can not meet the needs of the adjustment of rural economic structure,therefore,the outflow of rural capital happens,resulting the development funds of rural economy can not be satisfied.The fourth chapter is empirical analysis.It firstly introduces the selection of relevant variables,model construction,data sources and processing.The indexes from 1985~2014 are selected to conduct an empirical analysis,such as the economic growth of rural area,the rural finance.Secondly,make the test of the root of unity of the variables,and determine the stationarity of time series.Thirdly,establish the VAR model to analyze the influence of previous variables on rural economic growth.Fourthly,to make the cointegration test,solve the cointegration equation,and analyze the long-term equilibrium relationship of the variables.Fifthly,establish the impulse response function and variance decomposition.Sixthly,conduct the Grainger causality test.The fifth chapter is the conclusion and policy suggestion.Through theoretical analysis and empirical analysis,find that rural financial development is conducive to rural economic growth,but the rural financial development lags behind the economic growth in rural areas.The supply of financial restraint and the outflow of funds in rural areas makes the rural financial scale has no apparent effects on the growth of the rural economy,rural capital investment rate of return is low,the efficiency of rural finance is negatively related to economic growth.In order to achieve the effect of rural financial development,we should expand the rural financial supply,prevent the outflow of funds in rural areas,optimize the industrial structure in rural areas.