The Empirical Analysis on Rural Formal Financial Development and Rural Economic Growth in China

摘要

By the co-integration test and Granger causality test,this paper empirically studies the relationship of rural formal financial development and rural economic growth in China in the period from 1978 to 2004.The results indicate that rural formal financial development in China is far from meeting demands of rural economic growth.Rural formal finance development has not played the role of "supply leading",and it seriously lags in rural economic growth,being in the "demand following" status in China.This paper shows that rural formal finance is inefficient to rural economic growth,and rural informal finance should be paid close attention.