Abstract:
The rural economic development is inseparable from the strong support of capital flow. Source of capital flow in rural areas including agriculture their outputs, financial investment, financial services three aspects. China's rural areas through the establishment of capital flow and economic growth relations VAR model of interaction between the two verification revealed that in rural areas to promote economic growth impetus came mainly from rural finance and agricultural consumption deposit mechanisms, such as their own blood, agriculture contributed to the financial service system is very fragile, leading to the slow development of rural industries, households with lower income growth. So we must take the following countermeasures: to consolidate and strengthen the existing financial institutions the results of agriculture, and actively explore new forms of rural financial services; to strengthen and improve the farmer's credit rating system; to break monopoly and government guarantees, the establishment of efficient agricultural finance riskcontrol mode.
