Empirical Test on the Influence of Agricultural Finance on Agricultural Economic Growth

Abstract

This paper adopts the data of the agricultural loan and agricultural GDP of China's rural commercial banks from 1997 to 2018, and uses ADF test, Granger causality test, and Johnson's co-integration test to analyze the impact of agricultural finance on agricultural economic growth with VEC model and impulse response function. The results show that there is a positive and long-lasting equilibrium relationship between agricultural commercial loans and agricultural economic growth. The government should strengthen support and guidance to agricultural finance with the principle of solving the "three rural issues" to improve China's cooperative financial system.