| In recent years,China’s economy has developed rapidly,but the problem of large urban-rural income gap has not been resolved.The economic development in rural areas has always restricted the improvement of China’s overall national strength.To achieve comprehensive poverty alleviation in rural areas,it is mainly to achieve financial poverty alleviation in rural areas.Due to the particularity of rural areas in China,farmers tend to engage in informal financial activities.At the same time,farmers are generally constrained by more serious formal credit due to lack of credit collateral.The formal financial market lacks vitality,and farmers’ borrowing is difficult to seriously hinder.Economic development in rural areas.With the transformation of the rural economic system and the economic organization gradually becoming more formal,the future development of financial markets in rural areas mainly depends on formal credit institutions.Based on the theory of farmer’s borrowing behavior and the theory of social network,this paper studies the influence of social network on the formal credit behavior of farmers.By adopting the micro data of CHFS(2013),the social network is divided into individual level social network and family level social network.Add household condition variables and individual household characteristic variables,and analyze the impact of social networks on farmers’ formal credit demand,formal credit constraints,and formal credit availability at different levels.The bivariate probit model is used to influence the social network’s formal credit constraints.At the same time,the regression results of the social network’s formal credit demand for farmers are obtained.Then,the probit model is used to influence the social network and formal credit constraints on the availability of formal credit for farmers.The impact of social network and formal credit constraints on the availability of informal credit for farmers was added,and the results were analyzed and compared.The results show that social networks positively affect formal credit demand,both at the individual level and at the household level,negatively affecting formal credit constraints and positively correlated with formal credit availability.Farmers with strong social networks tend to engage in formal credit activities,receive less formal credit constraints,and have higher availability of formal borrowing.Formal credit constraints are negatively correlated with the availability of formal credit,and are positively related to the availability of informal credit.Farmers who are constrained by formal credit are less likely to obtain credit from formal credit institutions,and the threshold of informal financial markets is lower,so they turn Informal financial markets are borrowed,and daily financial activities are dominated by informal financial activities.By comparing the regression results of formal credit availability with informal credit availability,social networks have an impact on the availability of formal credit and the availability of informal credit,and have a greater impact on the availability of formal credit..According to the research results of this paper,from the perspective of farmers’ social network,the relevant policies and suggestions are proposed from the perspectives of individuals,financial institutions and government.Farmers should actively manage and increase their social networks.When financial institutions formulate financial products,they will Social networks are taken into account;the government should fully consider the characteristics of rural areas in rural areas when formulating policies. |
