A Research On Credit Constraint Of Flatfish Small Micro Aquaculture In China

Fishery was an important part of agriculture in our country, and played an important role in providing animal protein for the people and ensuring food security. The animal protein which was provided by this industry was much higher than the world average level of 16.6%. Because of the rapid development of aquaculture, its position increased quickly in China and the world aquaculture industry. In 2012, 72.6% of total output of aquatic products was from aquaculture in China. Flatfish aquaculture was an important industry in marine aquaculture in China; its output was 124000 tons, 1.5% lower than perch aquaculture. The flatfish aquaculture industry was booming with the promotion of factory farming, and the investment threshold and the application level of modern farming methods were higher than conventional aquaculture. Therefore, there were some reference functions to the study of flatfish aquaculture industry for the development of aquaculture in our country.The development of aquaculture also promoted the development of agriculture economy in China. Most aquaculture enterprises located in rural areas; its development couldn’t lose the support of rural finance. Aquaculture enterprises owners had the characteristics of farmers and small business owners. The credit constraint was always the focus of academic research. There were some different views about the degree of credit constraint on farmers and small medium enterprises(SMES) in previous research. So, there was a very important practical significance to study the credit constraint of flatfish aquaculture when we combined the current development situation of aquaculture with the credit financing situation and considered the dispute in credit constrain degree on farmers and SMEs.This paper discussed the credit constraint of flatfish aquaculture from the perspective of credit demand. Firstly, this paper analyzed the causes of credit constraint from the theory based on carding the venation of related research about credit constrain; then for further analysis of its causes, this paper used the survey data which is provided by the flatfish industrial technology system research of Ministry of agriculture to make an empirical study on the factors which affected the credit constrain of flatfish aquaculture.The research method was direct measurement method and empirical analysis. In order to directly identify if the aquaculture enterprises had the credit demand and credit constrain, the author and other team members designed a questionnaire and surveyed the aquaculture enterprises from Shandong and Liaoning Province by the two stage sampling method, then tested the influencing factors of its credit constrain by the univariate probit model and bivariate probit model.The main conclusions of this paper were as follows:Firstly, the survey found, 24.11% of the sample enterprises did not have nominal credit demand, the nominal credit demand of flatfish aquaculture was not very high. The loan satisfaction of aquaculture enterprise was normal, about 27.7% of the sample enterprises were constricted.Secondly, the theoretical analysis showed that, the increasing of transaction cost made the probability which the enterprise took the initiative to give up applying for a loan rose, the credit constraint come out, Besides, the information asymmetry led the willingness to lend of financial institutions which regarded benefit maximization as the management goal to decline, and then financial institutions implemented credit rationing and the credit constraint formatted.Thirdly, the empirical research showed that, under the condition of without considering the nominal credit demand, the overall credit constraint of flatfish aquaculture was affected by the owner whether to have other enterprises or work, the owner whether to have real estate certificates, the nearest distance between enterprise and financial institutions, the proportion which fry expenditure, feed expenditure, land rent and wage expenditure account for total expenditure, the number of round trips when business owners get a loan and the debts of enterprise to financial institutions before 2014.Fourthly, this paper combined the credit demand and credit supply and made an empirical analysis of the flatfish aquaculture’s credit constraint on the basis of analyzing the nominal credit demand, and then compared two results of empirical analysis. The study found that the increase of credit constraint degree of business owner who was credit default was the result of credit demand and credit supply; the nominal credit demand was affected negatively by the owner whether to have other enterprises or work, the owner who had other enterprises or work had more funding sources, the probability of loan was lower, so the credit supply also reduced accordingly, this led the degree of credit constraint to increase; the nominal credit demand of business owner who had real estate certificates was insufficient, and the credit supply was based on the nominal credit demand, so the shortages of supply resulted from the lack of demand, thus the owner’s level of credit constraint was more larger than the owner who had not the real estate certificates; the influence that the number of round trips when business owners get a loan affected the credit constraint level was from credit supply. The proportion which fries expenditure, feed expenditure, land rent and wage expenditure account for total expenditure was larger, the owner’s nominal credit demand was stronger, then the probability which financial institutions provided capital was larger, so the credit constraint level declined accordingly. Although farming methods, business owner whether to have social resources and the revenue in 2013 had a significant impact on nominal credit demand, the credit supply of financial institutions and the overall credit constraint level were not affected by those factors, the cause of the difference remained to be further research.For the research contents of this article, the author thought that the source of the existence of credit constraint in flatfish aquaculture enterprises and other aquaculture enterprises was not only the shortage of loan supply and the quantity rationing of financial institutions but also the lack of nominal credit demand of business owner. Therefore, in order to ease the credit constraints of the aquaculture, promote the development of aquaculture enterprises and the financial services industry, it is important to solve these problems from two aspects of credit demand and credit supply.