Research On Rural Finance Supporting Modern Agriculture Development

Since the reform and opening up in 1978,China's economy has achieved a leap forward growth,creating a miracle of economic development that has never been seen in human history.The economy of the vast rural areas has also made remarkable achievements,with a substantial increase in agricultural output value and a rapid increase in the per capita income of rural residents.However,compared with the rapid development of the economy in the first and second tier cities,the economy in rural areas,especially in ethnic areas,is still very backward,the income of farmers needs to be improved,and the level of productivity is relatively low.To solve the problems in rural areas,farmers and agriculture is still the top priority of the party's work,and also the biggest short board of China's future economic development.It is a very complex project to realize the modernization of agriculture and rural areas and promote the development of traditional agriculture in the direction of modern agriculture.It needs the cooperation of many industries and fields.Finance plays a very important role in this process.Based on the panel data of eight ethnic areas in 2002-2018 and the existing methods of agricultural modernization calculation,this paper uses entropy method to comprehensively evaluate the comprehensive score of modern agricultural development in ethnic areas from multiple dimensions such as agricultural industrialization,water conservancy and chemistry,and applies it to the study of the development degree and basic change characteristics of modern agriculture in ethnic areas in China.Following the principle of combination of theory and demonstration,the theory mainly uses Harold Domar economic growth model and endogenous economic growth model to analyze the mechanism of rural finance supporting modern agriculture,the demonstration mainly uses dynamic panel regression model to verify the supporting role of rural finance in the process of agricultural modernization,and a series of robustness tests ensure the accuracy of the empirical results In order to provide practical policy suggestions for the development of modern rural areas in ethnic areas.This study shows that the development level of modern agriculture and rural finance in ethnic areas of China is different from each other in 2002-2018,but the overall growth trend,especially the rapid growth of modern agriculture and rural finance in Inner Mongolia.In the aspect of empirical research,the growth rate of modern agriculture in the current period in ethnic areas will promote the growth ofmodern agriculture in the next period,which has a significant "time inertia" effect,indicating that the steady promotion of agricultural modernization requires a plan and patience to fight a "protracted war",and the short-term effect cannot be overemphasized.Under the control of other variables,rural finance is stable and significantly promotes the development of modern agriculture in ethnic areas,which has a significant "lag" effect.Therefore,it is an effective way to realize the rapid development of modern agriculture that rural finance can realize the balance of supply and demand of funds needed for agricultural development,achieve the effect of reasonable allocation of capital,and promote the improvement of agricultural production technology and efficiency.The estimated coefficient of economic development and per capita cultivated land area is positive,which indicates that the higher the economic development degree in ethnic areas is,the larger the per capita cultivated land area is,and the more obvious the effect of promoting the development of modern agriculture is.Therefore,it is necessary and urgent to continue to speed up the economic growth and improve the education level and human capital of farmers to promote the rapid development of modern agriculture.The degree of trade opening may inhibit the development of modern agriculture,which indicates that under the background of the new economic normal of opening to the outside world,it is necessary to adopt appropriate policies to protect the development of modern agriculture in ethnic areas.At the same time,it is necessary to add impetus to the development of agricultural economy in policy,reduce the resistance of modern agricultural development,and realize the rapid growth of agricultural economy in ethnic areas.