Analysis Of The Influence On Peasant Household Caused By Micro-finance

The economic development promotes the requirements of capital.Except for the various financing channel,credit supply has became the mainstay of the economy.Because of its outstanding characteristics,Micro-finance is also important to the rural areas.It has a rapid development in the past few years,and most of the analysis about it is according to the sampling survey in a certain area.So we can't make a comparison between the different regions.Panel data model is the preferred method to deal with the variation in region and time.According to that,the article will analyze the difference of the provinces in China based on the panel data model.descriptive statistics and entropy weight method.First of all,this article describes the evolution trend of micro-finance throughout the country by descriptive statistics,then use the individual fixed effects model,which is one of the panel data models,to analyze the impact of production and living on peasant household caused by micro-finance.And the main researches include:1)The descriptive statistics of micro-finance.Most of the banks run the business of micro-finance.The micro-finance companies are expanding their business.The analytic hierarchy process of micro-finance business just covers the rural credit cooperatives and micro-finance companies.Shandong province is the most outstanding in micro-finance business among the rural credit cooperatives throughout the country.But the Zhejiang and Jiangsu province have the biggest advantage in the number of micro-finance companies.2)The empirical analysis of the influence in farmers' living standards which was caused by micro-finance.The index of farmers' living standards is obtained by weighting other four indexes including ineome?eonsumption?saving and fixed-asset investment.Act up to the entropy weight method,the first step is to weight the four other indexes in every year,then synthesize the time series.After this is to do unit root test%co-integration test?F test and Hausman test for all the data.Based on the work upside,I build the panel data model and error correction model.The result says that the micro-finance plays a significant role in the improvement of the farmers' living stands in a long-term.And the effect in the west area is the most significant.The influence of microfinance in living stands has a lag effect.