Empirical Analysis on the Performance of Rural Credit Cooperative’s Shareholding Reform Based on the Rationale of Isomorphic Incentive Compatibility

Rural economic development helps reduce the income inequality in China. Existing studies show positive effects of rural reforms, however, whether credit cooperative’s shareholding reform promotes and are exerted through synergism between agricultural producers financial institutions remain unclear yet. Employing rationale isomorphic incentive compatibility from system science, we analyze necessity influencing conduit theoretically. Analysis shows that only services commercial banks can promote modernized production, thus them drives development. Then make empirical analysis on effect with a Chinese provincial sample. Comparing to provinces lower progress, greater progress influenced more prominently by this reform. Applying coupling coordination degree model, production banking obvious increase, especially after formal implementation cooperative. Empirical results indicate plays roles promoting growth reducing urban–rural gap. In addition, these pronounced