Analysis On Changes Of Financing Systems And Supply And Demand Based On "Shaji Model"

The No.1 document focus on Three Rural Issues for 10 years in a row, which suggests that the Chinese government attaches great importance to the problem of rural, farmer and agriculture, and reflects the complexity of the three rural problems. The No.1 document in 2013 demand the central requirements on modern agriculture construction, giving full play to the superiority of the basic rural operating system, striving to build intensive, specialization, organizational and social combination of new type of agricultural management system. According to the requirements of the general office of the China banking regulatory commission, it requests to increase the agricultural credit; Vigorously support the development of the new type of agricultural production and operation organizations, and promote the intensive agricultural production and operation scale transformation.As a typical combination of rural industrialization and informationization, the "Shaji Mode" is providing leadership in pilot reforms. Against the backdrop of national policy support for agriculture, rural areas and farmers problems, it is of considerable realistic significance to approach financing challenges faced with farmers in Shaji town by analyzing its financing institutional transitions. On the basis of the North Institutional Transitional Model in addition to David Feeny’s Institutional Transitional Heuristic Framework, this paper firstly elaborates on the Cycle Process of the Institutional Transition by constructing the Supply and Demand framework of Institutional Transition and establishing the Process Analysis Chart of Institutional Transition. After that, this paper analyzes the motives for financing institutional transitions of Shaji town through questionnaire and case interviews.Analysis found that:the potential profit is the root cause of induced institutional change; financing institutional change of farmer online merchants in Shaji town is a kind of demand leading to type and step-by-step style innovation process, this kind of spontaneous and stationary process partly solved the problems such as economies of scale, lower transaction costs and risk aversion; the long-term use of single change mode results in the decline of institutional marginal efficiency, even in a system supply trap, effective countermeasures is given play to the role of the government’s guidance, the implementation of mandatory institutional change.Finally, it’s important to note that lacking of funds is an important problem in the development of Shaji town, but it is not the only problem. According to external environment condition, the development of "ShaJi model" still faces the problem of lacking of rural industrial layout, backward infrastructure and difficulty to keep up with supporting services.