A Study On Financing Channels Choice And Influence Factors Of Rural Households

There are formal financial channels and informal financial channels in the rural financial market.In many areas, the formal channels can not meet the needs of peasant household, the informalchannels play an important role in the rural financial market. Based on the case of Linzhou cityin Henan province, the paper mainly analysis the financing behavior of rural households in thetwo aspects of financing, the study includes three parts: The first, we adopt the statisticaldescription to depict the financing station of the sample households. It was found that informalfinancing channels are the main channel for rural households’ financing. The second, we conductthe empirical study on the influence factors of financing from the informal channels according tologistic model. The result shows that: the network of formal financial institution, householddeposit and the cognitive of the lending policies have a positive significant effect on farmers’informal financial demands. Factors such as farmer’s age, the number of migrant worker, theannual net income of family and civil financing have a significant negative impact on farmers’informal financial demands. The third, based on the survey data of rural households who areparticipant in civil financing, we conduct linear regression analysis. In addition, we carry out theempirical study on the influence factors of civil financing of the sample of all rural householdsaccording to logistic model. It turned out that: the rate of interest, farmer’s age, the borrowingfrom the formal financial institutions and informal financial institutions in the past andhousehold deposit affect the behavior of civil financing notably. In the last part of the article,According to the results of the empirical analysis, we present the policy recommendations toimprove the rural financial market.