EMPIRICAL ANALYSIS OF THE RELATIONSHIP BETWEEN DEVELOPMENT OF RURAL FINANCIAL SYSTEM AND RURAL ECONOMIC GROWTH

This article investigates the relationship between the development of the rural fi nancial system and the ACP economic growth. The vector error correction model, co-integration method and impulse response function are used to analyze the data. This article does the systematic empirical and quantitative research from the three aspects of the fi nancial system: its scale, structure and effi ciency. This research shows that it has the equilibrium co-integration relationship and long-term one-way Granger causality between them. That means rural fi nancial system effi ciency, rural fi nancial deepening, and improvement of the structure of the rural fi nancial system can increase the growth of rural economy, agricultural development and peasants ’ income signifi cantly. Therefore, it is necessary to increase the effi ciency of rural fi nancial institutions and to improve the rural fi nancial system structure and security of the rural fi nancial system to maintain rural economic growth, agricultural development and farmers ’ income