The Relationship Between The Borrowing Behavior Of Rural Households And Their Income

Dealing with rural-agriculture-farmers problem, coordinating urban-rural development, constructuring new socialist countryside are the important points of the government work.Improving the capacity of the agriculture production promoting the development of the rural economy,making peasants living a better life,all of this, need rural finance. Improving the rural financing system,increasing the supplyment of financing products, meeting the peasants’s financing demand are the first important jobs. The accessing conditions of rural financial instructions are loosened in 2006.It directs that a new beginning of the rural financial reformation. Along with this the environment of the rural finance is improving. But is it promoting the peasants’ income? How much does it satisfy the demand of the peasant? In order to answer these questions, the paper research the relationship between the borrowing behavior of rural households and their income. The subjects of the research are the rural households from ten provinces, including Anhui Fujian Guizhou Hunan Jilin Jiangsu Neimenggu Ningxia Sichuan Henan.The total number of the households is 20040.Acoording the data, we analyze the characters of the peasants financial behavior,and then we give some suggestions about the construction of the rural financial system. We use 2sls to research the relationship between income and having debt. The result of the research suggests that having debt could increasing the income of the peasants.The paper includes six chapters. The first chapter introduce the background of the research, discuss the rural finance of our country is financial repression or financial deepening, and then indicate the deficiency of the rural financial system. At the same time, we introduce the opinion of the paper, the methods of the research, the difficulty of the research, and the creative point of the paper.In chapter two, we introduce the current researches on rural finance,including the constructions of rural financial system, the development of rural finance,the type of debt demand,the characters of peasants financial behavior.These papers give me some new ideas and the knowledge of the rural financial history.We begin our research in the third chapter. We analyze the income structure of the peasants and its influence factors. We find the important income source of rural households, using 20040 sample households survey data. The result is that 67 percent households get their income from agriculture actions,24 percent from salary,8 percent from non-agriculture actions,1 percent from other channel. It suggests that agriculture actions is still the most important source of income.Rural financial instructions should support the development of agriculture.We find the characters of the debt behavior of the peasants in chapter four. We analyze the characters from the quantity of the loan, the channel of the loan and having demand of debt or not.In chapter five we construct a model to find the relationship between income and the debt of peasant.The total income is the dependent variable, the debt of peasant having or not is the independent variable. The result of the model suggests that having debt can increase the income of the peasants, which is the same as our anticipation.We give some suggestions about the rural financial system on the basis of the research, hoping to help the rural financial system construction.There are some differences in this paper compare to other papers on rural finance.1、The data we use in the paper from 10 provinces，including 20040 samples,a large sample.2、Describing the financial behavior of the peasants more precisely.3、Using 2sls to research the relationship between income and having debt or not of peasant.