Agricultural Credit Market In China: Mechanism And Efficiency

With China's agricultural modernization, the demand of agricultural capital will be more and more. Thus, the agricultural credit, as an important part of agricultural capital, will take more and more effect on agricultural development. Generally, distributing the agricultural credit by market is the basic rule of market economy. The policy regulation, however, is necessary in the development of agricultural credit market (ACM) for the particularity of agriculture. Now in China's transition economy, the financial restrain is still serious. Therefore, the main factors that restrict the development of China's ACM will be discussed in this thesis, through the analysis of its mechanism and efficiency. Additionally, this thesis also provides policy reference for China's cultivating ACM and enhancing its efficiency.In this thesis, the agricultural credit, as a production factor, is putted in the market analysis framework. Under this logical framework, the mechanism and efficiency of China's ACM have been studied theoretically and empirically. In detail, the mechanism analysis has been divided into four parts: the demand of agricultural credit, the supply, the interest rate and market equilibrium, disequilibrium information and risk. Additionally, the efficiency analysis pays attention to two sides: market efficiency and the ACM's effect on agricultural output. The main conclusion is that (1) China's ACM is incomplete, therefore, the market equilibrium is in low level; (2) the operating scale, the income and property, the product investment, the cash expenditure of education and medical treatment are the main factors that affect the credit demand of households in rural China; (3) the asymmetry information, the high transaction cost and the lack of effective supply institutes are the main factors that lead to low efficiency of China's ACM; and (4) the agricultural credit has the positive effect on China's agricultural production factors demand and agricultural output, consequently, the agricultural credit is the main factor that restrain the increase of agricultural output and agricultural development.Consequently, in order to improve the mechanisms of China's ACM as well as to enhance its efficiency, it is essential that (1) to integrate China's ACMs separated in all of the country; (2) to construct agricultural credit information system and to reform land market institutes; and (3) to reconstruct China's agricultural credit system, especially, to reform the institutions of RCC and enlarge the scale of ADBC's agricultural policy credit.The main innovation points in this thesis are as the following. The market analysis framework of China's ACM has been put up. The main factors that affect the agricultural credit demand have been found by the empirical analysis and econometrics method. The effect of non-equilibrium information and risk in China's ACM has been analyzed. The outline of the market-oriented policy of agricultural credit has been described. A framework of efficiency analysis in China's ACM has been set up. The efficiency that agricultural credit affects on agricultural output has been analyzd by econometrics.