An Empirical Analysis Of Farmer Formal Credit Supply In Western Region

Increasing the income of farmers is always the top priority core content to issues of agriculture, rural area and farmer. It also is the central objective of agriculture and rural economy in the 12th Five-Year Plan. In the current social and economic context, the western region, as the important part of the development in our strategic, is very prominent in the contradiction between finance supply and demand in its rural areas. Supply shortage of finance has become a constraint of rural economic development and farmer income growth. From the angle of the main supply of formal credit, this paper analyzes the situations about rural credit in western regions. On this base, it empirically analyzes constraints of formal credit supply through using data of Gansu Province Rural Credit Union (GSRCU). In the meantime, it also studies the formal rural credit supply efficiency of GSRCU in 2009 by DEA. Through the research, this paper shows that the formal credit supply occupies a higher proportion of the credit supply in western region, and RCU is the main power in the formal credit supply. Regression analysis verifies that the formal credit supply of GSRCU has a variety of constraints to formal credit factors such as expense, loan, deposit, etc. DEA empirical result shows that the overall efficiency of formal credit supply is not high in GSRCU, and 85.7% of its branches have inadequate investment and surplus output in some certain degree. Finally, the paper gives some measures for the exiting problems.