Research On The Anti-poverty Mode Of Agricultural Value Chain Finance In China

With China's continual achievements of poverty alleviation,to overcome poverty in deep-poverty areas has become one of the main tasks of comprehensively building a moderately prosperous society.For adapting the strategy of rural vitalization raised in the 19 th CPC National Congress,the People's Bank of China,united with several other departments,jointly issued On Financial Support to Deep-Poverty Areas' Poverty Alleviation,which emphasizes that the core of rural vitalization is to win the anti-poverty war.The rural vitalization,as a long-term strategy,is in favor of both realizing the goal and consolidating the achievement of poverty alleviation,which can thoroughly change the appearance of poverty-stricken areas and build the basis of real poverty alleviation for peasants there.The Agricultural Value Chain Finance,as a new mode of rural poverty alleviation,can efficiently unite poor peasants,financial institutions,local rural intermediary agents,core enterprises and governmental agencies together,and truly accomplish the information sharing through an idea of "risk sharing with benefit sharing",connecting all participators in the value chain finance to the market effectively,to satisfy and ease the financing distress caused by a lack of guarantees for participators,especially for poor peasants in a weak position.This paper,which is based on the perspective of poor peasants,explores the poverty alleviation mode of the Agricultural Value Chain Finance systematically in theory and in empiricism,in order to expand the theoretical border of poverty alleviation of the Agricultural Value Chain Finance and to improve the interdiscipline of finance and sociology.The paper tries to promote the country's poverty alleviation services of value chain and to provide references to the nation's rural financial poverty alleviation system,carrying great significance for the victory of anti-poverty war and realizing the strategy of rural vitalization.Based on the viewpoints above,the paper is established on the core definition of the Agricultural Value Chain Finance,regarding poor peasants as entry points,and define the Agricultural Value Chain Finance as a financing activity participated by members inside the agricultural value chain,or by financial institutions outside the chain with the members inside the chain.The Chapter 3 introduces the information asymmetry theory,the contract theory,the transaction costs theory and the agricultural financial market theory,as foundations,to analyze the Agricultural Value Chain Finance multiple embedability,and discusses from the perspective of local rural intermediary agencies and peasants,quoting models to prove that the information screening,transaction costs and reputation mechanisms,during the value chain financing,are important factors to influence the stable and sustainable development of the Agricultural Value Chain Finance.The Chapter 4 focuses on comparing three classic cases of the Agricultural Value Chain Finance to discover the feature of the mode,and analyzes them from the tightness of connection,stability of cooperation among game-agents,pursuing recovery mode of informal system,information sharing degree and major credit enhancement agencies,which rationalizes the inner evolutionary logic of poverty alleviation modes of the Agricultural Value Chain Finance lengthways.The Chapter 5 and Chapter 6 together introduce Structural Equation Modeling(SEM)and Treatment Effect Model(TEM),analyzing behavioral factors of poor peasants participating in the Agricultural Value Chain Finance and poverty reduction effects of the Agricultural Value Chain Finance quantitatively.The Chapter 7,as a concluding chapter,tries to design a new Agricultural Value Chain Finance mode under informal financial niches,and concludes the whole paper as well as proposes developing advice to the nation's Agricultural Value Chain Finance modes based on our current national conditions.The paper draws several research conclusions: Firstly,poor peasants embedded in Agricultural Value Chain Finance have internal stability.On the one hand,fund specificity ensures poor peasants investing funds into production process.In order to guarantee qualified crops at the end of the period,the linkage entities will provide farmers with technical guidance or production materials to increase the added value of agricultural products.The income of poor peasants who participate in the agricultural value chain finance will be higher than that of traditional agricultural planting,which will reduce the farmers' willingness to default;on the other hand,the chain's implicit reputation mechanism can impose constraints on the behavior of poor peasants.When the poor peasants default,the spillover effect of the reputation mechanism will have a direct negative impact.This will not only affect their own profitability,but will also affect other members' behavioral decisions,thus the overall benefits within the chain will be changed.Therefore,the dynamic implicit reputation mechanism included in the agricultural value chain actually generates incentive for farmers,ensuring the stability of the value chain financing.Secondly,three poverty alleviation modes of the Agricultural Value Chain Finance have different advantages,which can fit different areas with different economic levels.The Agricultural Value Chain Finance can be effectively developed as enterprise-centered when some leading enterprises appear in undeveloped areas,and the peasants' income can increase rapidly with the help of core enterprises' kernel agricultural production technologies and sensibility to the market.If there are cooperatives or local rural financing cooperation intermediary agencies in undeveloped areas,the government will prioritize selecting a mode of value chain connected mainly by local rural intermediary agencies,and use the agencies as a bridge to stabilize the relationship.In extremely undeveloped areas,as the severe lack of local rural intermediary agencies with funds and intelligence,the government shall join the Agricultural Value Chain Finance as a main participator and enlarge the lending scale of formal financial institutions by sending professional crew or financial capital,encouraging core enterprises by loans to utilize financing inside the value chain to help poor peasants get rid of poverty.Thirdly,establish SEM of 367 poor peasants who take part in the Agricultural Value Chain Finance as research objects,and try to discover the positive correlation between their participation desires to the Agricultural Value Chain Finance and their individual features,family traits and reputation conditions.The reputation conditions have the most influence to peasants' participation desires,followed by their family traits and individual features.There is a positive correlation between peasants' Agricultural Value Chain Finance effect and their family traits and reputation conditions,and the reputation conditions effect it mostly.There is also interplay between the participation desire and the financing effect,especially under good effect when peasants have high agreement desires and satisfaction,and it will increase their enthusiasm of participating in the Agricultural Value Chain Finance.Finanlly,take 479 poor peasants in five poor counties in Henan Province as research samples,and build TEM of poverty reduction effect of agricultural value chain to empirically analyze its effect of income increasing and the effect of poverty alleviation.It can be learned that,through the earning function and resulting function,it does help poor peasants increase income and alleviate poverty when they participate in the Agricultural Value Chain Finance and it generate poverty reduction effect too,but income increasing higher than poverty reduction effect 8.34%,which refers that the increase of income doesn't mean the success of poverty alleviation,showing that the poverty alleviation effect is less than the income effect.With the improvement of the economy,the ratio of peasants' agricultural expenditure declines,while more money is put on education,medical care and housing,and multidimensional poverty may continually reduce until vanish.It is a process of instillation,so the poverty alleviation mode of Agricultural Value Chain Finance has a feature of time-lagging as well as sustainable development.The paper possesses several innovation points: First,the paper is set on the background of the nation's poverty alleviation policy,standing at the point of poor peasants,and combines the poverty alleviation mode of Agricultural Value Chain Finance with the sociological structural hole theory and Amartya Sen's poverty of rights and the theory of capability,accomplishing an innovation of theoretical sight.Second,there are few systematical researches on the Agricultural Value Chain Finance in China at present,even fewer researches on the combination of value chain finance and poverty alleviation,which makes the paper innovative.At last,the paper innovates the empirical method through field researches on poor peasants in poor counties in Henan Province,establishing SEM and TEM to solve problems of unobservable variate and endogeneity bias.