Household Credit Constraints Empirical Research

China is a large agricultural nation. Farmers play a principal role in agricultural production, and they are the mainstay in rural economic development. The development of agriculture, the stability of rural areas and the income increasing of farmers is closely related to financial support. Numerous studies show that the problem of loans for farmers has become the most common one in most of the developing countries. The contexts are followed. Family responsibility bearing coupling bag is China's basic economic system. The "three rural issues" is the most important thing. Rural financial reform is deeply carried out.The research taking Fujian for example analyses farmer credit of demand constraint empirically, can provide some experience about rural credit for Haixi area or even developed areas.This study got some revelation reviewed from the related literature. In the theory framework of information asymmetry, the research uses direct heuristics to presents farmer credit constraints hypothesis. Meanwhile it determines investigation combining the probability sample with simple random sampling method.1736 effective questionnaires is obtained and then statistical analysis of the questionnaire is carried out.The research analyses the factors that influenced the demand and reply of household loan, basing on combing the literatures which contain the influencing factors of credit constraint on household loan. The theoretical analysis above can provide theoretical basis for the empirical study. The statistics used in empirical study is based on Fujian of 2005-2008, which is the fixed observation point of national ministry of agriculture. Empirical study can conclude the factors that influence the demand of household loan. Meanwhile, it concludes the detailed analysis on the remarkable factors. Multiple linear regression model,whose statistics is from rural credit cooperatives in 2008, concludes the significant factors that influence the demand of household loan. Some corresponding suggestions is put forward accordingly.Some research shows that recently farmers are exposed to constraint by both the nominal credit demand and the effective credit demand. Farmer credit constraint is the result caused by the interaction during the reason of demand and the reason of supply as well as exterior environment. The theory of farmer credit demand claims that the important factors that would influence farmer credit demand should embody the farmer household individual features which include the three category:the farmer household feature, the production feature and the property feature. The theory of the farmer credit supply considers that the scale of the financial institution and its credit management are the important factor of the farmer supply constraint. The theoretical analysis of the farmer credit constraint shows that the factors affecting it include the following ones:the rudimental condition of the farmer household, the cultivated area, their main course, head of a household's age, the distinctive source of income and so on, while the factors affecting the farmer credit constraint are the ones below:the scale and its structure of financial institutions, its internal administration, enterprise governance structure, management state, exterior environment and so on. The empirical analysis of the constraint of the farmer credit demand supports that influencing factors that whether a farmer loans from the financial institutions or not depend on the following six aspects:whether the head of the household is the village cadre, his salary income, current assets, the household total expenditure and the geographic position. There are also six factors which affect the formal financial institution from which farmer's loan money:the head of the household's age, the number of labor, whether the farmer is the village cadre or not, the farmer's salary income, current assets and the total family expenditure. The empirical analysis of the constraint of the farmer credit supply shows that the following aspects:the deposit sum of the Rural Credit Cooperatives, the rate of the formal loan over the total sum, the interest income from the loaning of the household, non-operating income and the quality grade of assets have positive and effective influence on the credit supply, while the following aspects:the other kinds of loaning of the Rural Credit Cooperatives,(except loaning to the farmers), the loaning rate, the interest expenditure, the operation expense and other kinds of expendible operation fare and other expenditure, the net scale of fixed assets, the mountain area have an negative and notable influence on the loan activity of farmers.The research indicates that the further improvement of rural credit system, the enrichment and development of rural financial system, the further improvement of countryside backflow mechanism, the innovation of rural financial service, the further reform of the rural financial system and the further perfect of the relative supporting measures to solve the credit constraint.