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The Research on the Financing Problem of Rural Infrastructure Construction in China

Author: ChenZuo
Tutor: HuiEnCai
School: Dongbei University of Finance
Course: Investment in the economy
Keywords: rural infrastructure financing effect financing suggestions
CLC: F320
Type: Master's thesis
Year: 2011
Downloads: 147
Quote: 0
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Abstract


The influence of rural infrastructure in rural economic and social development is immeasurable. The social needs and income producing by Multiplier Effect of rural infrastructure are several times bigger than what we paid. The practice at abroad indicates that the urbanization process and agriculture modernization need the support of rural infrastructure. The rural infrastructure construction in improving agricultural productivity, increasing agricultural output and improving the living standards has an enormous significance. Besides, it is also significant meaning in solving the problem of issues concerning agriculture, farmer and rural area, expediting the process of modernization and advancing the new rural construction. Because of the "scissors gap" developing mode in our country, the investments of urban infrastructure is significantly more than the rural infrastructure. In the four trillion investment plan of 2008, the share of major infrastructure construction in urban is 37.5 percent, and the people’s livelihood and infrastructure project in rural is only 9.25 percent. The total and supplying of rural infrastructure is poor for a long time. At the Third Plenary Session of the Seventeenth Central Committee, the reform and development of rural are put on the agenda, and a series of measures in the balanced development and improved structure of urban and rural areas play a positive role.The main reason of poor supplying of rural infrastructure is the lack of investment. The investments of rural infrastructure mainly comes from governments at all levels and the collective, but the financial of governments at all levels spends more on urban infrastructure than rural infrastructure, and the basic government in what they do and what they owe is lack of symmetry, they have no more money to invest. Farmers for the disadvantaged, it is not fair that farmers invest the rural infrastructure. What is more, some operation causes serious influence such as investment decisions inefficient, relaxed inner control, lacking in supervise and lack of maintenance. The thesis uses both the tools of positive and normative analysis and draws support from relevant theories to analyze the necessity and urgency of rural infrastructure construction, to provide some suggestions in order to better the rural infrastructure financial system. The author believes that the rural infrastructure financial system can be improved by improving the financial efficiency, expanding source channel of fund, contributing circumstance of exterior and the rural infrastructure will make a beneficial recycle between investment and profit.This text is divided into five parts mainly. Part one is the introduction, which contains the research purpose, significances, research structure and indicates the framework and technology line. Part two introduces the basic theory of rural infrastructure which contains the definition, the feature description and the classification. It is on the basic of two theories including the public finance philosophy and the project financial theory. Part three analyses the current situation of rural infrastructure’s construction and finance. The construction contains farmland irrigation and water conservancy, rural road, electric energy systems, march gas, rural education and rural social security which has huge influence to the rural economic and society. Starting with the financing body, the difficulties of rural infrastructure finance is analyzed. Part four analyzes the financing effects of rural infrastructure. First of all, a needed analysis is done to the financing effects of theoretical analysis about economic infrastructure and social infrastructure. Then, based on the data from 1995 to 2009, this paper analyzes the relations of rural infrastructure and agricultural output, non-agricultural output, farmers’income by using econometrics methods. In order to better the rural infrastructure financing system, part five provides some suggestions and foundations by analyzing how to improve the financial efficiency, expand source channel of fund and contribute circumstance of exterior.

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CLC: > Economic > Agricultural economy > China 's agricultural economy > Principle of policy and its elaborate
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