Abstract: This paper investigates negative investment of rural finance and Kuznets Curve Effect. Part one constructs a theoretical model to explain the relationship between negative investment and the forming mechanism of Kuznets Curve Effect. By using the VAR model, part two investigates the impacts of negative investment of rural finance on rural GDP and farmers’ income. The conclusion part of the paper analyzes the roots of negative investments and poses systematic improvement framework of Kuznets Curve Effect to construct an inclusive rural financial system and eliminate financial dualism.
Keywords: Rural Finance, Negative Investment, Rural Economy Growth, Kuznets Curve Effect
source:Finance & Trade Economics ,No.2,2013