Research Of Agricultural Credit Fund Allocation Efficiency And Its Influencing Factors In China

Currently, rural issues has become a serious problem which have an impact on the economic development. As the main form of financial services in rural regions of China, agricultural credit plays an important role in rural economic development.The allocation efficiency of the agricultural credit is the decisive factor of how it influences the economy. With the support of national policies and measures, the amount of agriculture credit in our country increase rapidly. However, if the allocation of agricultural credit funds is irrational, it will result in a waste of resources and hinder the development of China’s agricultural modernization. China’s economic development gap between regions is large, the distribution of agricultural credit resources is bound to be in non-equilibrium state, but most of the existing research is starting from a macro level, and research on the differences between provinces were analyzed less. Therefore, it is helpful to measure the agricultural credit efficiency of regional differences,then analyze the factors what affect the efficiency, and it will have important practical significance.First of all,this paper made an review of relevant research abroad. Based on theory of financial development, rural financial market theory, capital allocation theory,this paper made an definition of the’allocation efficiency of the agricultural credit’.Then through sorting agricultural credit data,this paper analyze the current situation of China’s agricultural credit, from the main supply institution, the size and the structure of agricultural credit. After that, by collecting agricultural loan data from 2003 to 2012 of 31 provinces, and selected agricultural loans as inputs indicators, the agricultural added value, farmers’ income, urbanization rate, as output indicators, using two-stage DEA method to analysis technical efficiency and scale efficiency of the agricultural credit. For the regional difference of the agricultural credit efficiency, this paper selected the pure technical efficiency as the dependent variable, selected the degree of development of financial markets, the level of economic development, commodity market trading efficiency, productivity levels in rural areas, urban-rural dual structure, rural human capital which are the possible influencing factors as independent variables. After that, the paper established the Tobit regression model to analysis it.Through a method combined with the theoretical and empirical analysis, this paper has the following conclusions. First, found problems such as the agricultural credit supply is Insufficient, the structure is not balanced, the outflow of funds, etc. Second, found that the allocation efficiency of agricultural credit was significantly negatively correlated with the development of financial markets and the rural productivity level. Last, found that the efficiency was significantly positively correlated with the level of economic development and the commodity market trading efficiency. Finally, based on the theoretical and empirical analysis, the paper tries to put forward some policy recommendations to improve the efficiency of agricultural credit funds.