Rural finance plays a role in rural economic development through affecting marginal productivity of capital, affecting savings rate and affecting the transformation efficiency of savings into investment, based on the endogenous growth model and four-dimension vector autoregression model, the empirical analysis of rural finance operation efficiency and rural economic development of China during 1978—2010 shows that there is a longrun stable equilibrium relation between China’s rural finance and rural economic development, that there is a positive relation between the transformation rate of rural savings-investment and rural economic development, that the rate of rural finance correlation is Granger cause of rural economic development and produces significantly positive impact on rural economic development, however, the transformation rate of rural savings-investment and rural savings ratio have negative impact on rural economic development. Thus, China should studiously raise the transformation rate of rural savings-investment and rural finance correlation rate based on perfecting rural laws and regulations of rural finance and completing rural finance market system and cultivate rural small and medium-sized finance institutions and rural informal finance institutions to support and boost rural economic development.