Analysis on Economic Mechanism and Practices of Financial Support for Forestry

Forestry is an important fundamental as well as social enterprise. Due to the inadequate structure of forestry fund, the unbalance in economic development, asymmetric information and some internal constrains in forestry itself, the gap between the supply and the demand of forestry fund has been the main obstacle in the development of forestry. In this paper, we focus on the economic analysis of causes and solutions deficit of forestry fund. Basing on the conclusion of the analysis, we will propose schemes on how the financial intermediary could mitigate the problem of asymmetric information control the risks involving the forestry investment and match up funds over different periods; as well as fully fulfill the guidance function of the national finance.