Research Of Farmers’ Loan Behavior Based On Livelihood Capital

In recent years, solving the "three rural issues" has become the common understanding of all sectors of the society, the key to solve the "three rural issues" lies in the participation and support of rural finance.Rural financial participants include: government, rural financial institutions, rural enterprises and farmers.The investigation and research of microcosmic subject of farmers need more cost, most research on rural financial problems concern on supply of rural financial.As the subject of rural finance, making research on farmers’ borrowing behavior is very important.The author thinks, the current rural financial problem lies in the lack of demand rather than the supply.This thesis attempts to study the micro subject from the livelihood capital direction, discuss the characteristics and find out the difference of borrowing behavior between different rural places.Depending on the actual background and the need of rural financial’s development,this paper takes Sichuan province Pingwu and Wangcang as the research object,392 valid samples were obtained. Firstly, calculating the livelihood capital value,the calculation results indicate that Wangcang county’s natural capital’s value is lower than Pingwu county ‘s, but Wangcang’s human capital, financial capital, social capital and physical capital’s value is more higher than Pingwu’s. Secondly, depend on the use of Logit model to exam how the livelihood capital influence the loan behavior of farmers.The empirical results show that, the Pingwu county and Wangcang County’s human capital, natural capital, physical capital and financial capital has significant effect on farmers’ loan behavior.human capital, material capital and financial capital are significant in 1% levels.But the natural capital has negative effects on the loan behavior, that is, the farmer whose the two natural capital are high is rarely borrow from rural finance.Based on the Logit model test,the paper also use OLS model to exam how the livelihood capital influence the amount of farmers’ loan. the empirical results show that, both the human capital, natural capital, financial capital and social capital are significant.The influence of natural capital is negative, the others is positive effect.Through the analysis we also found that: the farmer who live in the same area, the same capital’s influence is different between borrowing and the amount of loan.because of different traditional culture, political, institutional and other reasons,areas with different economic development levels, the influence of the same variable may be different.