The Empirical Analysis on the Quality of the Financial Services in China Rural Areas

Financial services can meet the need for capital. To study the quality of financial services in rural China, this paper brought out 4 variables denoting insurance, loan in China rural areas. With the time series from 1982-2009 on the 4 variables mentioned above, the author measured the quality of the financial services in China rural areas through the cointegration test and the VAR model. The result indicates that there are 4 cointegration relations among those 4 variables. That is to say, the quality of financial services in China rural areas is stable in the long run.