Suppression Study, Based On The Demand Perspective Shaanxi Rural Financial

In the first 10 years of "developing the western region", the rural finance of Shaanxi province which has made great progress has played the important role in the allocation of financial resources and support of economic growth in rural areas of Shaanxi Province. But there are still some very serious problems of financial repression in the development of rural finance of Shaanxi Province. It is very hard for peasant households to finance from formal financial sector. That has constrained the development of rural economy in Shaanxi Province.Based on the domestic and foreign research, the theory of financial repression and financial deepening and Financial Restraint, this paper has generally described the situation of financial repression in rural area of Shaanxi Province at first. And then analyzes theoretical basis of analyzing the rural financial repression based on financial demand. At the same time, it analyzes status and impacts from structural financial demand and the level of financial satisfaction based on the 2098 surveys of peasant households. Furthermore, it analyzes the constrains on the financial demand of peasant households which come from the peasant households themselves,formal and non-formal financial institutions. At the same time, it uses the Hierarchical Model and the Simple Logit model of log-linear model to test the constraints from the peasant households themselves. The results show that the level of income education and the purpose of the loans are the main impacts on the financial demand of peasant households. In the conclusions, the higher income and education the peasant households have the easier to get the loans from the formal financial institutions. The loans used in the production are easier to get than the ones used in livelihood. Finally, it gives the strategy which could eliminate the constraints of Shaanxi rural financial demand is Financial Restraint and the path is to follow the demand. Additionally, based on the expansion of the financial demand of peasant households and increasing the supply of rural finance, it gives the policy recommendations of eliminating the Financial Repression in rural areas respectively.