The Impact of Financial Development on Agricultural Enterprises in Central China Based on Vector Autoregressive Model

Abstract

China is a large developing country, and there is no doubt that it is a large developing agricultural country. Agriculture has played a vital role in the development of the national economy since ancient times, and it serves as the foundation of China’s national economy. As agricultural modernization is the fundamental way of agricultural development, its source of funds must come from rural finance. The financial support of rural finance for agricultural modernization is the material basis and prerequisite for ensuring the healthy and rapid development of agricultural modernization. If there is no financial support from rural finance, the process of agricultural modernization will be hindered, and it will not benefit our country’s socialist modernization. Although our country’s rural financial system has been constantly changing and improving, our country’s current financial system still has many shortcomings and defects. In the process of supporting agriculture, rural finance has insufficient capital supply, which has become a “bottleneck” in the development of agricultural modernization, and to a certain extent has severely restricted the development of agricultural modernization. On the basis of existing literature research, this article systematically studies the influence of rural financial market structure on the development of agricultural enterprises in central China. The content includes agricultural total factor productivity and agricultural emission reduction. When analyzing the impact of rural financial market structure on agricultural development, this article also pays attention to its specific impact on agricultural development under the conditions of different types of enterprises.