Quantitative Analysis of Long and Short Term Interactions Between Town-village Enterprises and Joint-stock Commercial Banks

Only really favorable interactions come into being between town-village enterprises(TVES)and joint-stock commercial banks(JSCBS),it can financing difficulties of TVES possibly ultimately be.The interaction between them is divided into short and long term,which is analyzed quantitatively by Granger causality test,co-integration test and ECM models.The results indicate:in the short run,the growth of TVES is promoted by JSCBS,while the development of JSCBS is not promoted by TVES.In the long run,there is only one equilibrium between them.What's more,once the equilibrium is deviated,the disequilibrium will go toward the equilibrium by self-correction mechanisms.Only measures in several aspects are adopted purposely,do favorable interactions between them come into being.