A Positive Analysis on the Impact of Different Credit on Rural Household Income
|School||Nanjing Agricultural College|
|Keywords||Household borrowing Household income Formal financial borrowings Non- formal financial lending|
\With the development of rural economy, agricultural population gradually shift to non-agricultural areas, migrant workers and self-employed businesses in the rapid development of rural areas, gradually accelerated pace of industrial restructuring, all production and business activities require a lot of money, farmers demand for credit in rural expanding. Money lending practices of rural residents and their revenue growth is basically the same trend changes, residents in large part about the money lending practices of its revenue growth rate and growth potential. However, a long time in the rural financial repression and the \On the one hand, China's rural financial supply long-term shortage. With a new round of rural financial system reform, state-owned commercial banks have to shrink the central city, the revocation of a number of merger and below the county branches, rural credit resources will be transferred to the city. On the other hand, the rural financial market as the main demand - farmers own shortcomings, leading to the diversification of household demand for credit, which is the monopoly supply of funds of financial institutions and business unity in stark contrast. In the formal financial institutions can not meet the demands of the farmers, farmers can rely more on non-formal financial channels into the capital, informal finance a considerable extent, compensate for the lack of formal financial ease the development of rural economy and farmers living starved for funds. Therefore, at present China's rural lending market presents formal financial lending and non-formal financial lending coexist. This paper studies the formal and non-formal financial loan lending impact on household income, financial and non-formal to formal financial development and rural financial system to provide a reference. This per capita GNP, economic development and the external environment in the north select five prefecture-level cities, selected sample of 675 households, the survey of 2008 farmers borrowing conditions. Access to relevant data in this paper, on the basis of qualitative and quantitative analysis, qualitative analysis of different types of farmers loan size, purpose, incidence, and characteristics of different income levels of farmers borrowing, lending its farmers in order to predict the direction of income levels, in order to further study lending relationship to income, descriptive statistics in the above article, based on the establishment of econometric models for regression analysis, using least squares (OLS) of formal financial and non-formal financial impact on farmers' income. Through quantitative and qualitative analysis of the data, we draw the following conclusions: farmers more funds from non-formal financial markets, diversification of informal finance to meet the financing needs of farmers, for speeding up the pace of industrialization in rural areas and promoting rural Northern economic growth has an irreplaceable role. The use of funds from the farmers point of view, whether it is formal or informal financial lending financial borrowings and its use in life than money is more important than production. Whether formal financial loans, or non-formal financial lending, are able to improve the income level of farmers, and through the direct and indirect effects promote farmers' income. In accordance with the model estimation results, farmers 1,000 yuan for each additional regular amount of borrowings, net income increased by 364 yuan, 1,000 yuan for each additional non-formal financial lending, net income increased by 230 yuan, so the formal financial borrowings to net income of farmers affected results than the non-formal financial borrowings.