Reseaarch On The Influence Of Social Captial On Farmer’s Credit Default Behavior

Rural finance is an important force for rural revitalization,and the healthy development of rural financial market is of great significance in increasing farmers’ income,promoting the development of agricultural production and improving rural economy.Therefore,the Chinese government attaches great importance to the reform and improvement of rural financial market system.In 2022,the No.1 Document of the CPC Central Committee listed "strengthening financial services for rural revitalization" as an important content for the first time,which fully reflects that rural revitalization cannot be achieved without the support of financial services.The report points out that a key problem in rural revitalization is the lack of rural financial service supply and the lack of credit in rural finance.For a long time,the main direction of China’s rural financial reform is to increase the number of financial suppliers,but the effect is not ideal,farmers are still facing loan difficulties,insufficient supply of credit funds and other problems.Compared with urban areas,the loan demand of rural economic subjects will be relatively small,while its default risk is relatively high,and there are problems of rural credit system is not perfect.Due to the comprehensive consideration of risk,cost and income,agricultural financial institutions often have the psychology of fear and reluctance to lend to such economic subjects,which leads to the poor credit availability of such subjects and the formation of credit constraints.There is abundant social capital in rural areas of China,which can not only affect farmers’ credit availability,but also affect farmers’ credit default behaviors to some extent.Therefore,from the perspective of social capital,this paper analyzes the impact of different types of social capital on farmers’ credit default behaviors.Based on the survey data of some regions in Henan Province,this paper selects some of the farmers’ personal and family characteristics,loan characteristics and other related variables,and selects some of the farmers’ social capital variables and conducts factor analysis on them.According to the result of factor analysis,farmers’ social capital can be divided into three different types,namely relational social capital,organizational social capital and identity social capital.By using binary Logit regression model,this paper analyzes the different effects and mechanisms of different types of social capital on farmers’ credit default behaviors.It is found that relational social capital plays a certain role in promoting farmers’ credit default risk.The larger the relational social capital is,the more likely farmers are to have credit default.Organizational social capital and identity social capital can restrain farmers’ credit default behavior and reduce the probability of credit default.Therefore,when granting loans,financial institutions should pay attention to different types of social capital of farmers,improve the construction of credit system in rural areas,and reduce the risk of credit default.