Dissertation > Economic > Fiscal, monetary > Finance, banking > China's financial,banking > Banking system and business

Research on the Financial System Arrangement of County-Level Economy

Author GuoXinMing
Tutor LuoJianChao
School Northwest University of Science and Technology
Course Agricultural Economics and Management
Keywords county-level economic financial system system arrangement system changing system efficiency
CLC F832.2
Type PhD thesis
Year 2008
Downloads 1424
Quotes 8
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County is not only the foundation of Chinese development, but also the ligament between city and countryside, which pays an important role in the sustained, corresponded and healthy national economy development. Currently, the development of our county-level economy is confronted with several bottlenecks, and one of the most significant reasons is the existing financial system restrictions in county-level. Basing on institutional economics theories, financial development theories, and the financial institutional structure and changing theories, this paper analyzes the conflict between supply and demand in both gross and structure levels under county-level financial system in the process of economic changing, anatomizes the abuse of lack of supply relative to demand, opens out the computing relationship between the changing of county-level financial system changing and county-level economic development, posts the rootstock of the conflict in county-level supply and demand system , and then brings forward some county-level system arranging paths in unbalanced developing course and under no completing condition, and some optional strategy to strengthen county-level financial system of different areas. This paper totally has seven chapters, the idiographic contents are as follows:Chapter 1 Introduction. The background and meaning of this paper are putting forward, and also some summary about the already research papers. In addition, the research method, content frame, and some fresh aspects are clarified.Chapter 2 Financial system arrangement and county-level economic development: from microcosmic financial configuration to macroscopic economic increasing mode redaction. Through analyzing the influence of financial system arrangement to the credit gross and structure, and the influence of different investing channel to the output per capita and the economic increasing, this paper makes out a conclusion: the interposition of government to the economic development depends on a social total cooperation capability. Due to the lack of cooperation among the microcosmic financial bodies, and also the canvassing party for peasant benefit, the innovation of county-level financial system is in control of the government.The innovating performance of county-level financial system controlled by the government not has to be under the market controlled one, but decided by the right boundary of government power. Under the model of DGLLS, how a county could choose the most effective system structure and the answer is that depends on the figure of IPF. The innovation of county-level financial system controlled by the government is changing along the SCP2 curve,which is always regressing and convergent in this curve. The original intention of designing county-level financial system is using agricultural leavings to support the industry development; therefore, it is very serious that the fund in county-level has flowed into non agriculture field, and bad asset rate in book has been high always. So the government has already decided to solve the leaving hidden trouble. Under the current county-level financial system arrangement, some facts usually make the county peasantries can’t help but choosing folk credit, such as normal financial scale is not suitable for the demand supply, high rent cost and fussy examining process. Because of the different developing level of the different counties, the borrowing potential and the asset expanding ability are varied. If bring some factors like the saving scale, saving configuration and the enterprise capital frame into Solow-Swan economic increasing Mode, we could see that different financing structure of county-level enterprises could make different economic increasing and per capita income varied a lot, through influencing the expand speed and the invest efficiency. Under the frame of Douglas producing function, the earning disparity between two counties will be increased along with the boost of the financial development of the rich one, and will be decreased with the boost of the financial development of the poor one.Chapter 3 The actuality and problem of county-level economic development: an explanation about financial system arranging restrict. This chapter firstly analyzes“the bottle-neck problem”of our county-level economic development status: there are several problems, such as the imbalance of economic development, the difficult for peasants to increase their incomes, the lacking of agricultural industrialization and county-level enterprises’development in the process of county-level economic development. But the author thinks that the most important reason restricting county-level economic development is short of financial supporting. Nowadays, the laggard county-level financial system arrangement makes the scarcity of county-level financial main body, financial structure and credit putting in, and finally leads to the decrease of county capital resources, the increasingly serious conflict between fund supply and demand, the lack of agricultural investment and the short of capital for agriculture upgrade and the small and medium enterprise development. This is the most important reason which embarrasses the development of our county-level economic. Therefore, it must be done that more logical county-level financial system arrangement should be designed, and the problem of short of fund should be settled to boost our county’s economic development. Chapter 4 The supply and demand of financial system in the process of county-level economic development. This paper firstly analyzes the intrinsic demand character of financial system with several different bodies, such as peasantries, small and mediate enterprises, the constructions in the town and so on. Secondly, this paper takes apart the external supply arrangement of financial system in the process of county-level economic development. One thing should be mentioned is that there are seven questions between supply and demand: they are the conflict between fund demand and credit supply, big gap of credit in agriculture, prevalent existence of“zero credit village”, difficult financing of small and mediate enterprises, and short of governing financial system. It is popular that there are several conflicts between supply and demand of county-level financial system: they are the conflicts between the financial institution setting and economic development in county-level, the conflicts between the credit fund which going in for more profit and the always law economic benefit of county-level economic, the conflicts between the depravation of social credit and the bank’s credit risk control, the conflicts between the strategic change of commercial banks and the demand of fund of county-level enterprises, the conflicts between fund demand and fund flowing, and the conflicts between the more serious financial competition and not right system of financial institutions in county-level.Chapter 5 Demonstration of economic development and financial system changing in county-level: dynamic analyzing basing on sectional data. How to exactly analyze the county-level economic increasing and the influence of financial systems in financial development is a problem need to be solved soon. This chapter will design some guidelines of financial systems in county-level economic development, and will use sectional data, time series data and dynamic model to make a demonstration about the relationship between our financial system change and county-level economic development. Then this paper analyzes the efficiency of the county-level financial institutions. The result is that, the adaptability of county-level finance is correlative with the level of county-level economic, industry policy and finance policy. But in resent years, the adaptability of the county-level financial institutions is not good. In developed and fast developing counties, the adaptability of the county-level financial institutions is high, and in the same time, the industry policy and finance policy of these counties have positive functions. Vice versa, the adaptability of less developing counties is low, duo to lack of industry policy and finance policy supporting. In a word, the arranging of county-level financial system should fully consider the local economic foundation, and work with the national and local policies.Chapter 6 The review and inspiration of oversea county-level financial system. Combining the facts of Chinese counties, using the international successful experiences for reference to design a suitable county-level financial supply system is a feasible short cut. Using the economic developing level and financial structure as standard, in the point of the difference between developed and developing countries, this chapter introduces some typical county-level financial system of Germany, Japan, America, France, and India, analyzes the origin, frame, fund resource and loan direction of them, and inspires us that: the county-level financial system should be designed according to the equitable and perfect law, supported by the government, formed by voluntary cooperation of economic bodies, complemented by folk financing, and adjusted under market mechanism.Chapter 7 The arranging of financial system to promote county-level economic development. Since 1949, the character of Chinese financial system changing could be summed as from simple compelling supply system to enticing demand system, which is a typical superincumbent gradual changing mode. This kind of mode has some history limiting factor that is financial system is always depending on and lagging to the changing of economic system. Therefore, basing on several county-level economic characters, such as county-level financial supervising system, county-level credit environment, and economic development and so on, this paper points out that due to the binary Chinese county-level economy, the county-level financial system is imbalanced and no effective, according to the actuality of county-level economic development and the adaptability and validity of financial system, some suggestions about designing multi-tiered financial institution system, arranging regular and irregular financial system are necessary. It is hoped that through setting up agriculture financial supply system which adapts to demand increasing, constituting policies and inspiring which support agriculture finance, founding the mechanism of agriculture assuring and insuring guarantee, boosting up the agility of credit managing system of commercial banks, and establishing right relationship between banks and enterprises for small and mediate enterprises, balanced supply and demand relationship will be achieved.Chapter 8 The fitting measures for county-level financial system arrangement. This paper points out some fitting measures for county-level financial system arrangement. In order to adapt the suitable financial arrangement for inner demand of county-level financial system, this paper brings forward some fitting measures to improve the system environment, from the aspects of controlling risks, supervising finance, evaluating credit, fiscal policy supporting and so on. This makes the county-level financial system arrangement and economic system environment construction consolidated together.

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