Need Influence of Farmers Finacing in ZhangJiagang
|Course||Agricultural Economics and Management|
|Keywords||Farmer financing demand Credit rationing|
The paper is based on the theory of credit rationing, rural finance theory, utility theory, game theory and theoretically studies on the influence factors of farmers’ financing demand, which measure the financing demand gap of farmers on the basis of the analysis of farmer financing costs and risks. Use micro-data of farmers’survey in Zhangjiagang on the basis of the descriptive analysis of the factors affecting farmers financing demand; verify the influencing factors of farmers’ financing demand by logistic choice model.The basic conclusions of study are as follows:(1) farmers financing demand has many affecting factors. Farmers’ financing demand is not only related to their self-factors, such as age, educational level, income level, family fixed assets amount,but also related to outside financial markets faced by farmers. The complex process of bank loans, higher conditions of the finance supply party also has a heavy relationship with the financing demand of farmers. Another objective condition such as the distance from farmers’ living position to the central city also has a significant impact on financing demand of farmers. (2) The motivation of the farmers’ financing demand is a combination of consumption and investment. Simple consuming financing or investment financing is limited; most farmers’ financing is the cross of consumption and investment. Due to their own conditions low-income groups may have difficulty in financing, but still have strong demand on the basic consuming financing, and also have the investment demand of improving their own conditions. The main financing demands of high-income earners are investment and enhancing life quality demand. (3)farmers financing demand shows the "U" shape and the inverted "U" shape, which is "" concavo convex phenomenon. From revenue side, the proportion of low-income farmers’ and high-income farmers’ financing demand is larger than middle-income farmers, showing "U" shape. From distance from rural households to the central city, farmers’financing demand showing the inverted "U" shape, per-urban farmers and the outer suburbs farmers’ financing demand are less than the farmers between the two.(4) the Zhangjiagang farmers’ financing still has severe credit rationing problem. From the type of farmers’credit rationing:rationing of demand for credit, no borrowing price rationing 26.83%, the relationship rationing 18.59%, risk rationing 17.38%, transaction cost rationing 13.11%, social emotional rationing 10.98%, and punitive rationing 3.05%. (5) The main policy goals:Policy design should be done from both demand and supply aspects. From demand side:intensify publicity and education to farmers; increase spread of education of farmers’ financial knowledge, investment consciousness and credit conception, eliminate farmers’ misunderstanding to financial institutions, and continuously improve farmers’ financing risk awareness, reduce farmers’ financing risk; enhance their ability to resolve different risk for different levels of farmers, pay attention to credit risk and property risk among low and middle-income people, through resolving many aspects like improvement of social security system, risk-sharing mechanisms, and requirements for high-income earners to pay attention to market risk and systemic risk. Farmers’ financing risk warning system is built by macroeconomic indicators and farmers’ financial indicators. From the supply side:establish multi-level financial institutions system like commercial financial institutions, cooperative financial institutions, policy-oriented financial institutions; promote the mercerization of financial institutions’ interest rates; simplify credit procedures and reduce credit cost; promote and improve many types of rural financial market construction.This article studies on the influence factors of farmers’ Finance demands in Zhangjiagang based on the theories and demonstration which included:First, learn from related theories which refers to sort out farmers theory、financial repression theory、credit rationing theory、farmer’s logistic choice model, etc. Second, analyzed on farmers’ financing demands are according to the theories above. Based on related literatures and theories, divide effecting factors of farmers’ financing demands into three parts:farmers’ self-factor、living environment factor and financial market factor, meanwhile, analyzed on the gap of farmers’ financing demands by using demand-supply model、farmers’ consumption and produce life cycle, also with the further analysis on the cost and risk of farmers’ finance. Third, studied on demonstration of farmers financing demands in Zhangjiagang which mainly used microcosmic investigate data for doing descriptive analysis of farmers’ financing credit rationing status and analyze the effect factors of farmers’ financing demands in Zhangjiagang according to logistic model.The main features of this research can be illustrated as follow:using industrialization and farmers in middle-later periods urbanized developed regions in Zhangjiagang as major research object; Displayed in diverse on research methods, which means did both qualitative analysis and descriptive analysis on farmers’ financing demands, and researched on certifying the effect factors of farmers’ financing by using logistic medal. Enlarged the research on the effect factors is farmers’ financing. In addition to the influencing factors on the basis of previous studies farmer’ financing demands, increase farmers’ income which mainly from industry, the distance from farmers’ living place to the hub city,etc. And achieve the gap of farmers’ financing demands and the grade of credit rationing by designing "the farmers most want financing amount under the existing constraints".