Study On The Effect Of Farmers’ Financing Behavior On The Welfare Level In Shandong Province

With the development of rural economy and the agricultural structure adjustment pace gradually increased, the broad masses of famers’ demand for money is also increasing. However, farmers’ demand for funds cannot be satisfied and the main problem is farmers financing difficulties, which seriously affected the improvement of the level of farmers’ welfare. The farmer problem is the most important aspect of the three rural issues. Besides, it is urgent and necessary to solve the problem of peasant household financing and raise the welfare level. Therefore, this paper is going to make a research on the influence of farmers’ financing behavior on the welfare level. Most of the previous studies in this area focused on the analysis of the macro perspective. The research, from the micro perspective, on the effect of farmers’ financing behavior on their welfare is less, and also lack of empirical analysis. Hence, from the micro perspective and on the basis of the 500 questionnaires in Dezhou, this paper studies on the influence of the famers’ financing behavior on their welfare level in Dezhou City, Shandong Province. Furthermore, in this paper, the Probit Model, Logit Model and Stata 13.0 are used to make an empirical analysis on the factors affecting the farmers’ financing needs and the effect of farmers’ financing behavior on welfare level. Through the empirical analysis, we can get the conclusion that four factors, including peasant household age, number of labor force, incomes and type of operation, have significant impact on farmers’ financing behavior. Meanwhile, we can also get another conclusion that, among the factors that represent the farmers’ financing behavior, whether farmers borrow, amount of loan, loan use, number of loans and term of loan have significant influence on the factors which represent the farmers welfare level, including incomes, consumption and richness. Then, some corresponding suggestions for improvement are put forward.This paper contains five parts.The first part is introduction, which mainly presents the background and significance of the topic, and shows the research ideas and methods, points out the innovation points and deficiencies. The second part is the basic theories related to farmers financing and welfare, containing the rural financial theory, the theory of rural financing and the theory of rural household welfare. The third part shows the statistical analysis of farmers’ financing behavior and effective factors, and the state of farmers’ welfare. The fourth part is the empirical analysis on the influence of farmers’ financing behavior on their welfare level. The final part is conclusions and suggestions.