An Empirical Analysis Of The Relationship Between Rural Financial Development And Rural Economic Growth In Henan Province

Rural economic development is an important part of national economic development.To accelerate the growth of rural economy,we must vigorously develop rural finance.The development of rural finance can promote rural economic growth.Due to imperfect development,imperfect system and non-standard law,rural finance in China has long been faced with such prominent problems as "difficult mortgage,difficult guarantee and difficult borrowing".With the development of society,largescale modern agricultural production has gradually emerged,followed by the demand of township enterprises for the establishment of modern agricultural funds,facing a large number of capital needs,while the research and development of new agricultural technology and popularization need the support of rural finance.Our country has a vast territory,and the level of economic development varies from region to region.Most of the current research results are about the relationship between rural financial development and economic growth in China.There are few studies at the provincial level,and the conclusions are lack of pertinence.Henan Province is a large traditional agricultural province in China.In 2017,the rural population of Henan Province reached 54.09 million people,accounting for49.84% of the total population.Rural economy is not only an important part of the overall economy of Henan Province,but also related to the stability of rural social order.Henan's rural economy is far below the level of urban economic development,and the rural financial system needs to be improved,which has led to the widening gap between urban and rural residents in recent years.If we do not pay attention to rural economic development,we will inevitably fall into a vicious circle.Therefore,it is of great practical significance to study the relationship between rural financial development and rural economic growth in Henan Province,and then to think about how to form a benign interaction between rural finance and rural economy.This paper studies the relationship between rural finance and rural economic growth in Henan Province,and expounds the problems existing in the current rural financial development and rural economic growth in Henan Province.This paper makes an in-depth study on the three aspects that can reflect the level of rural financial development in Henan Province:rural financial scale,rural financial system and rural financial development efficiency,and expounds the current situation of rural economy in Henan Province from four aspects:rural gross domestic product,agricultural development level,rural residents'income level and rural fixed assets investment.In the empirical part,this paper uses Eviews 7.0 measurement software to make an empirical analysis of the 28-year time series data of Henan Province from1990 to 2017,and establishes a VAR model to verify the relationship between rural financial development and rural economic growth in Henan Province.According to the above analysis results,this paper puts forward corresponding policy recommendations from three aspects:expanding the scale of rural financial development,improving the efficiency of rural financial development,and optimizing the structure of rural financial development.