The Impact Research On The Farmers’ Social Capital To The Effective Participation Of Farmers On Rural Mutual Funds In Poor Villages

In the context of building a well-off society in an all-round way, there are new demand for poverty alleviation which needs to help the poor to achieve poverty and sustainable development to make poverty alleviation be effective. The model of the rural mutual funds in poor villages is as an important model of financial poverty alleviation plays an important role to the poverty alleviation, while it has the problem of offset poverty group of loan fund and the effect of capital use is not obvious. A lot of literature has studied these problems of mutual funds in poor villages but most of the solutions to the problem are discussed at the aspect of mutual funds. In view of this, this article will be from another perspective which is the farmer’s especially poor farmers’perspective to discuss the needs of farmers that is better use the poverty village mutual fund model to realize poverty alleviation. The main reason for studying social capital from the perspective of farmers is that the social capital of peasant households can be improved in the context of using less of the capital material to ascend and help economic development as well as the increase of individual income. In addition, the social capital and the poverty village mutual funds also have theoretical connection. To sum up, this paper aims to study the effect of the social capital of peasant households on the effective participation of farmers in rural mutual funds in poverty villages, to find out the social capital of peasant households affects the participation of farmers in the mutual funds of the poor village, the loan acquisition and the effect of loan use and prove the action of households’ social capital and make foundation to help the theoretical construction of poverty alleviation work.The contents and conclusions of this study mainly include the following aspects: First, based on the definition of farmers’ social capital, and using the factor analysis method to measure,determine the concept of farmers’ social capital. Obtain social capital’s level, and four dimensions including network, prestige, participation and trust. Secondly, using the probit model to study the impact of peasant households’ social capital on the participation of rural households in poverty village mutual funds, the result shows that the overall level of social capital of peasant households is positively affecting the participation of farmers. The network through objective conditions, trust and participation through subjective will affect the participation of farmers. Thirdly, the effects of farmer social capital on the availability of loans and the number of loans obtained by peasant households were studied respectively through using probit and tobit model. The research shows that the network level of farmers is positively affecting the farmers’ loan. At the same time, under the condition of obtaining the loan, the network, prestige and trust of the peasant households affect the number of loans obtained by the farmers. Fourthly, the effect of mutual fund loan on rural households was studied by using the PSM method and DID model. The consequence shows that farmers can obtain income growth through loans and the impact is greater, and the number of loans has a significant impact on the income growth of farmers; Then, DDD model is used to study the effect of rural social capital on the use of farmers’ loan, the result shows that the social capital of peasant households has a significant effect on the use effect of farmers’ loan, but the impact on income growth is not very high.This article mainly has the following three aspects of innovation. First of all, from the perspective system study of social capital of peasant households affect the whole participation process of farmers from participating in the acquisition to the getting of the loans and last to the using of loans, and we find out the social capital of peasant households has influence on the effective participation of peasant households in the rural mutual funds in poverty villages, then this article put forward a new angle and thought to solve the problem of poverty targeting and fund use effect in the mutual fund model of poverty-stricken villages. Second, the multi-dimensional analysis of social capital is carried out in the process of studying the whole problem and through different dimensions to find the influence of farmers’ participation in the rural mutual funds in poverty villages. And to find out what changes farmers should make to make it more effective. Finally, using the impact evaluation methods for policy in the study of the effect of peasant households’ social capital on the use of loans by farmers to determine the extent of the impact of rural households’ social capital on the use of loans by farmers, so it can provide a more in-depth and concrete research perspective for farmers’ social capital effect on the use of loan effect.