The Problem Of Rural Credit Cooperatives Loans Agriculture Research

Countryside problem, peasants' problem and agricultural problem are three basic issues for China right now. Although we should take political, economic and cultural views to solve those problems, one most important thing is the financial support from the rural finance. Considering the ongoing rural financial system, the Rural Credit Unions will play a tremendous role in supporting the rural areas'development. The thesis concentrates on the Rural Credit Unions'loan behavior and the effect of how it can promote the development of the rural areas in China.The first Chapter is the analysis of the effect. Theoretically, the Rural Credit Union's loan could raise peasants'income, allocate the resources more wisely and promote agricultural production. Then here comes an interesting question, which is whether the Rural Credit Unions'loan in China have a strong influence over the rural areas or not. The thesis will do an empirical analysis on the Rural Credit Unions'loan effect by using Econometric methods. The result shows that the Rural Credit Unions'loan and the rural areas'development have a strong connection in the long run, while in the short time the Rural Credit Unions'loan doesn't notably promote the rural areas'development. It means that there might be some factors which constrain the Rural Credit Unions'loan's effect.In the next chapter, the thesis focuses on the analysis of those constraining factors. By using the Credit-Rationing Approach, we can see that the problems are from the rural financial environment and the Rural Credit Union itself, which are rural financial markets'competition missing, agricultural risk transferring mechanism missing, the interest rate's control by the regulators, the weak credit awareness of the peasants and the management problem of the rural Credit Union.At last, against all those problems mentioned above, the thesis will propose solutions and suggestions for it, hoping that it could upgrade the rural credit union's loan's effect on the rural areas'economy development in China.