Confirmation Of Rural Land Contract Right,Threshold Effect And Credit Availability

China’s rural areas have been in a state of capital shortage for a long time,which seriously restricts the development of rural economy and society.There is a structural imbalance in the supply and demand of rural finance,coupled with serious information asymmetry,a lack of collateral generally,idiosyncratic costs and risks,and non productive lending.Credit rationing is widespread.Under the background of a new round of farmland confirmation right,the liberalization of the land rights transfer makes the land mortgage loan possible.Is it possible to improve the availability of farmers’ ?What is the mechanism?These are questions that deserve further study.This study selects the PSM model to clarify the causal relationship between confirmed rights and the availability of farmers’ loans,to further estimate the net effect of farmland confirmation rights on the availability of credit.In addition,combined with the "threshold effect theory”,the mechanisms of "farmland confirmation rights-wealth threshold effect-credit availability","Farmland Confirmation Rights-Cost of Information Threshold Effect-Credit Availability","Farmland Confirmation Rights-Transaction Cost Threshold Effect-Credit Availability" and "Farmland Confirmation Rights-Fixed Assets Threshold Effect-Credit Availability" are included in a research framework,attempting to further study the intrinsic mechanism of confirming right on the availability of farmers’ loans.The conclusions of the research include:(1)In the form of legal system,the property right of farmland is formally endowed with the property of mortgage of farmland,which promotes the liberalization of land right transaction,alleviates the credit constraint suffered by farmers,effectively improves the loan availability of farmers,showing the Desoto effect.(2)Income significantly promotes credit availability,and deposits have an inhibitory effect on Farmers’ loans.Farmland confirmation rights increases the contribution value of unit income to credit availability,while at the same time it has a mitigating effect on the inhibition of farmer deposits,thereby reducing the wealth threshold of farmers’ credit.(3)Confirmation rights to secure farmland as collateral approved by financial institutions,and Rural Land Mortgage significantly improves the availability of Farmers’ Credit.Especially,confirmation rights not only strengthens the influence of farmers’ willingness to loan on the availability of loans,but also stimulates the behavior of farmers’ loans.Overall,the threshold for information costs has been lowered.(4)The imperfect credit system and scattered market structure lead to high transaction costs,which hinder the realization of farmers’ normal credit rights.The study found that confirmation rights alleviates the negative effect of loan cost on the availability of credit,and effectively reduces the threshold effect of transaction costs.(5)Farmland confirmation rights alleviates the negative effect of homesteads on the availability of credit,and prompted farmers to increase investment in productive fixed assets,and further improve the availability of formal credit funds for households.It also reflects farmland confirmation rights has an indirect effect on farmers across the “asset threshold”.