Farmers Borrowing Of Funds And Its Affecting Factors Analysis

As the advance of the reform and opening up as well as the development of rural economy, more and more peasant households gradually transmit to non-agricultural areas. The pace of restructuring agriculture accelerates, and the demands for financial services grow day by day in rural areas. The reform of rural financial system has been started since 1996 in our country, and many rural financial policies have been adjusted, among which the commercialization of rural bank and the regulation of RCFs especially make the RCCs become the only formal financial organization in rural financial market. But the financial services provided by RCCs are very limited due to a series of problems such as government interference, regulation, historical burdens, and so on. Thus the financial demands of the peasant households can't be fully satisfied.There have been a lot of researches on rural finance done by national scholars, which lay emphasis on the existing problems and solutions in rural finance from macro level. The method of the researches is mainly normative analysis. On the contrary, positive studies from micro level, especially from the aspects of the households' credit demand are much fewer, and most researches are based on the investigation of traditional farming areas. In this paper we investigated 151 peasant households from five villages in Yongkang City, Zhejiang Province, and studied the features of peasant households' borrow and the factors affecting peasant households' borrowing behaviors through statistical and econometric analysis, and then put forward some suggestions based on the conclusions. There are five chapters in this paper:Chapter 1 mainly introduces the reasons for selecting rural credit as the object of the study, defines some relevant concepts and the object studied, and gives out the purpose, the route and the method of this research.Chapter 2 gives a summary and comment on the literatures on the theory of rural credit market and peasant households' borrowing behaviors. The main content is as follows: the features of rural credit market in developing countries, three leading theories on rural credit market, different policy suggestions based on different theories, researches based on the paradigm of "imperfect information in credit market", positive studies on peasant households' borrowing behaviors and brief comment on these literatures.Chapter 3 gives a description of the main features of peasant households' borrowing behaviors from all aspects, including the areas studied, the general situation, the scale, the frequency, the purpose, the object, the interest rate, the duration and so on.Chapter 4 is the positive analysis on the factors affecting peasant households' borrowing behaviors. In this chapter, the author first gives out the theoretical hypothesis on the factors affecting peasant households' borrowing behaviors, then establishes an econometric model to analyze the datum, and at last discusses the results.Chapter 5 gives out the conclusions and policy suggestions. In this chapter the author gives out the conclusions based on former analysis, and then comes up with the policy suggestions, including: paying attention to the difference on areas while reforming the rural financial system, deepening the reform of RCCs, improving the quality of financial services, opening the rural credit market properly, exerting the function of the government in rural credit market, and increasing the policy loan in rural areas.