Research On Financial Support For Rural Economic Development In Zibo City

In the report of the 19 th National Congress,General Secretary Xi Jinping made a comprehensive discussion on "rural revitalization" and repeatedly pointed out on this basis that the "three rural issues" are always a major issue that "concerns the country’s livelihood.It has been repeatedly pointed out that the "three rural issues" have always been a major issue of national importance and livelihood.The 14 th Five-Year Plan also puts the "three rural issues" in an important strategic position,and Zibo City has responded to this by pointing out that it should focus on the "three rural issues",comprehensively promote the construction of the countryside,and make efforts to create a rural revitalization "three rural models" with Zibo characteristics of the Qilu model.The"three agricultural model".At the same time,Zibo City is also in a critical period of economic development,but there are still major shortcomings in agriculture.Zibo City’s ranking in the province has been declining in recent years,and the proportion in the primary industry is still low.Although Zibo City’s rural economy has also made some progress,but the growth rate is relatively slow,and the rural economy has not been revitalized and failed to support Zibo’s economic development during the critical period of Zibo City’s transformation.However,the growth rate of credit in Zibo City is getting slower year by year,the benefits of the development of the financial sector are going down year by year,the requirements for rural finance are also rising year by year,and the contradiction between supply and demand is still very obvious.In such a situation,how to solve the existing rural financing problem is of great practical significance for financial support to the rural economy.This paper firstly reviews the domestic and foreign literatures on the efficiency of financial support for agriculture,the relationship between rural finance and "agriculture,rural areas and farmers" as well as the factors affecting financial support for agriculture,and introduces the theory of financial development,the theory of rural credit subsidy,the theory of rural financial market and the theory of imperfect competition market to provide theoretical support for this study.Secondly,it summarized the evolution of financial agriculture-supporting subjects and related policies in Zibo City.Thirdly,through collecting the data of Zibo City from 2011 to 2020,this paper adopts the method of grey correlation model test to make an empirical analysis on the role of finance in supporting the rural economic development of Zibo City.The conclusion shows that: There is a strong correlation between rural financial development and rural economic development in Zibo city.Especially since the coordinated development,the development of rural finance in Zibo City has greatly promoted the development of rural economy in terms of scale,structure,efficiency and agricultual-supporting degree.At the same time,the fixed effect model is used to empirically test the influence of rural financial support on rural economic growth.The empirical results show that: when other factors remain unchanged,the strengthening of rural financial support has a positive impact on the growth of rural economy in Zibo;Different types of rural financial support,such as rural infrastructure construction investment loan,rural personal consumption loan,agricultural enterprise co-guarantee investment loan,have significantly promoted the growth of rural economy in Zibo City.Then,combined with the results of empirical analysis,the existing problems of financial support for agricultural economic development in Zibo City were analyzed.Finally,the paper puts forward some feasible measures for rural finance to promote rural economic growth in Zibo city,and puts forward relevant suggestions from the aspects of expanding financial scale,optimizing financial structure and improving financial efficiency.