Study On The Effect Of Green Finance In Promoting Rural Revitalization In China

The Party and the country have always attached great importance to the development of farmers’ agriculture and rural areas.The development of farmers’ agriculture and rural areas is related to the success or failure of the national reform and development cause,and achieving the comprehensive development of "three rural areas" is the key to breaking the situation in the new era.With the completion of poverty alleviation,rural areas in China have achieved all-round and leapfrog development.However,at this stage,there are still a series of problems in rural areas,such as uneven development,population loss,and low total dependency ratio.In recent years,with the deepening of reform,the country has increasingly attached importance to rural development,while paying increasing attention to ecological environment protection.To achieve the strategy of rural revitalization and completely change the current situation in rural areas,it is necessary to choose the road model of green development.Green finance focuses on the environmental protection benefits of finance and sustainable development,which coincides with the concept and implementation method of rural revitalization.The role of green finance in promoting economic growth,increasing employment,and promoting industrial upgrading has also been discussed by many scholars.Green finance has a profound impact on the overall development of rural areas in China.Based on the above background,this article studies the impact of green finance on rural revitalization from both theoretical and empirical perspectives.In terms of theory,it has successively defined the concepts of green finance and rural revitalization,analyzed the relevant theories of green finance and rural revitalization,as well as the mechanism,development status,and existing problems of green finance promoting rural revitalization.In terms of empirical research,this article selects provincial panel data from 30 provinces from2011 to 2021,constructs a rural revitalization and development index,uses a fixed effect model to conduct empirical analysis of the impact of green finance on rural revitalization and development levels,and divides provincial data into eastern,central,and western regions to study the heterogeneity of green finance on rural revitalization and development levels in different regions.The main conclusions are as follows: First,The National Rural Revitalization and Development Level Index showed a steady increase from 2011 to 2021,and rural areas achieved rapid development from 2011 to 2021,with the overall growth rate basically unchanged.There is heterogeneity in rural revitalization and development in the western and eastern regions of the Middle East.Rural residents in the eastern region are richer than those in the central and western regions,and the central and western regions are also struggling to catch up in other areas,with mutual advantages;Secondly,the three indicators of green finance in China,green credit,green insurance,and green investment,are all positively promoting the level of rural revitalization and development,and green finance is conducive to rural revitalization and development.Digital financial innovation has a positive regulatory effect on green credit and green insurance to promote rural revitalization and development,but has no regulatory effect on green investment to promote rural revitalization and development;Thirdly,there is significant heterogeneity in the effect of green finance promoting rural revitalization in the western region of the Middle East.Green credit is positively promoting rural revitalization and development in all three regions,but the effect in the eastern and central regions is better than that in the western regions.Green insurance is promoting the revitalization and development of rural areas in the eastern region,but its effect on the central and western regions is not significant.Green investment in the eastern region has a promoting effect on rural revitalization,but has a certain inhibiting effect on the central and western regions.Through the analysis and research of this article,combined with the current development situation and problems of green finance promoting rural revitalization,suggestions are given as follows: strengthen green finance policy guidance,strengthen rural green finance infrastructure construction,strengthen rural green finance digital technology innovation ability,strengthen rural green finance awareness in rural areas,and strengthen the construction of rural revitalization talent team of financial institutions.