A Study On The Size And Eiffciency Of The Credit Funds Allocation For Agricultural Projects In China

China is a large agricultural country, and only when the agriculture develops steadily can ourcountry has a solid foundation; only when the countryside become stable can our society be peaceful;and only when the peasants become well-off can our nation become prosperous. The construction andinvestment of agricultural projects is a necessary measure to promote the agricultural development, therural stability and the increase of peasants’ income. Credit funds as a kind of financial capital has animportant role in promoting agricultural projects, and its scale and efficiency are the key factors toachieve the contractual goals of agricultural projects. The thesis has conducted both theoretical andempirical researches on the scale and efficiency of credit funds allocated in agricultural projects, whichhas both theoretical and practical significance.This thesis expounded the research background and the current situation, gave a theoreticalexplanation on the credit funds allocation in the agricultural projects, based on the financialdevelopment theory, the rural financial development theory and capital allocation theory, defined somerelated concepts concerning with the scale and efficiency of credit funds allocated in agriculturalprojects, and put forward the subjects, objects and measures of the allocation of credit funds inagricultural projects. Empirically, penetrating from the current financial situation of the agriculturalprojects, this thesis has figured out the financial channels, financial ways and problems of financing inthe agricultural projects in our country; illustrated the present situations of supplies and demandsallocation of credit funds, viewing from the suppliers and demanders of the credit funds; analyzed theeconomical effect of credit funds allocation in the agricultural projects with the Granger Causality Test;calculated the configuration of the optimal scale and financial deficit according to the theory of theFinancial Interrelation Ratio; conducted the quantitative evaluation on the allocation efficiency with themethod of DEA model, by taking the integrated agricultural development projects as examples. Finally,this thesis analyzed four elements influencing the scales and efficiencies of the credit funds allocation,including eco-environment of rural financing, governments, financial institutions, non-financingenterprises and individuals, and offered some corresponding suggestions.The conclusions drawn from the thesis are as follows: at present, there are various financingchannels coexisting in china including the government financing funds, banking credit funds, fundsfrom non-banking financial institutions, civil funds and foreign funds, etc. However, the governmentfunds financing is insufficient, the effect of direct financing from capital market is limited, civilfinancing is lack of standardization, too many restrictions on foreign funds. Thus, credit funds fromfinancial institutions have become the main source of the agricultural projects, but the current support isdeclining. The general supplies and demands of credit funds in agricultural projects are unbalancedneither in total quantity nor on structure. And the wide gap between allocation scale and the optimalscale has made it difficult to play the role for the promotion of the added value of agriculture. Since1988, the allocation efficiencies of credit funds have always been very low, and have displayed some structural problems of unbalanced allocations among areas and the industrial imbalance of internalagriculture.. The factors which affect the scales and efficiencies of the credit funds allocation inagricultural projects mainly include the countryside financing eco-environment, government, financinginstitutions, non-financing enterprises and individuals, and the corresponding measures mainly includeoptimizing the countryside financing eco-environment, transferring the government functions andimproving the credit funds allocation capabilities, strengthening the supervision of the credit funds andcultivating the countryside market financing systems, remodeling the main subjects of countrysidecredit funds and perfecting the organizational system of agricultural credit, cultivating qualifiedfinancial talents and innovating credit products and services, enhancing the abilities of both agriculturalentrepreneurs and households, fostering the principal status of the market entities, emphasizing theevaluation and management of agricultural projects.