An Emprical Analysis of the Relations between Hunan Rural Finance and Economic Growth

The theorem of carrying out an empirical analysis on the relations between the rural finance and economic growth has already aroused widespread concerns of various countries´ academia, this theorem´s application, however, is quite rare in China, especially at the provincial level. Hunan, as an important hinterland province in China, is more than appropriate for applying exotic theories to analyze its state of affairs. This paper empirically analyzed the relations between the rural finance and economic growth by taking relevant theories of rural finance and economic growth as the foundation and utilizing the method of co-integration analysis. The result indicated that the rural finance development and economic growth of Hunan province present one-way causality and financial repression did exist in Hunan rural area. The paper also came up with corresponding countermeasures and suggestions based on the actual fact.