Research On The Impact Of Rural Finance On Agricultural Economic Development In Hubei Province

With the further development of agricultural modernization,the role of rural finance in the development of agricultural economy has become more important,and the importance of rural financial development from all walks of life has become deeper.However,in view of China’s rural financial development practice,at present,there are still many problems in China’s rural finance,and its support to the agricultural economy has not been fully reflected.Therefore,research on the mechanism and actual situation of rural finance supporting agricultural economic development has a certain positive effect on the coordinated development of rural finance and agricultural economy in China.As a province with a large agricultural economic output value,Hubei Province has a certain practical significance to study the situation in which the province’s rural finance supports agricultural economic development.This paper mainly uses literature analysis and case analysis,empirical analysis and normative analysis,qualitative analysis and quantitative analysis,and combines rural financial data and agricultural economic data of Hubei Province to study the actual situation of rural financial support for agricultural economic development in Hubei Province to Explore the problems and propose corresponding improvement measures.This article first consults a large number of theoretical research literatures about rural finance and agricultural economy to lay the theoretical foundation for this article,and understands the mechanism of rural finance’s impact on agricultural economic development.Then This article extensively consults the relevant statistical documents to analyze the development of rural finance and agricultural economy in Hubei Province.Finally,using the sample data of Hubei Province from 1988 to 2018 to build an indicator system,which includes agricultural economy,rural financial development scale,structure,and efficiency,agricultural fiscal expenditure intensity and agricultural insurance depth indicators,and perform unit root test.After the above indicators are determined as a stationary series,they are subjected to a co-integration test and a Granger causality test,and after they pass the stability test,they perform impulse response function analysis and analysis of variance to verify the short-term impact of the independent variable on the dependent variable And contribution.Finally,according to the current state of rural financial development in Hubei Province and the conclusions of empirical analysis,from the optimization of thesavings effect and investment effect of rural financial development,the optimization of the resource allocation effect of rural financial development,the leverage of agricultural finance,and the optimization of agriculture,Corresponding suggestions were made on the economic effects of insurance.Through the above steps,this paper concludes that rural finance in Hubei Province can support the development of agricultural economy as a whole,and the scale,structure,and efficiency of rural finance may be direct influencing factors,which can affect the development of agricultural economy to varying degrees.At the same time,it is necessary to rationalize agricultural fiscal expenditures and strengthen the development of agricultural insurance to better promote the coordinated development of rural finance and agricultural economy.