The History And Theory Base Of Credit Operation And Its New Practice In Ningxia

As commercial credit, credit on advance has a history 2000 or more years old in China. A new phenomena appeared in Ningxia rural that agriculture business or broker provide farmer with breed, grass seed, etc, as well as technical service on condition that after harvesting they divided up profit according agreement. Its significance is obvious, but study about it is insufficient.The study belongs to research category of incomplete contract and institutional economic. Theoretically and practically the paper study four aspects: firstly discussing the linkages and differences among credit operation, contract fanning, and leasing operation. Then summing up the process of history of it and interpreting new practice and the characteristic of it in Ningxia, furthermore probing into it in institutional economics, Following above analyzing its development mechanism and policy effect. The stress of the paper exist in part two, three and four, especially thinking theoretically on the practices of credit operation in Ningxia including the natural characteristic, theory content, market competition mechanism of it ,etc, which are also I try to innovate. While it is a attempt to summing up its development and to analyze it in game theory. In order to make the research application value, Based on the case of Ningxia, finally the paper discussed the foundation of credit and put forward policy suggestions about it.