Research On Peasant Household Microfinance In Underdeveloped Regions Of China

The production operation of peasants in underdeveloped regions of China has been facing a long-term shortage of financing source and lack of inflow of capital. How to ensure that capital flows to hundreds of millions of rural households to ease financial restraint in underdeveloped rural regions and to achieve financial co-ordination of supply and demand; this is the issue that has been most concerned. Microfinance has been playing more and more important role in the rural finance of underdeveloped regions of China as a result of institutional and technical innovation. This paper takes peasant household microfinance in Taikang County, Henan Province as an example, through statistical and econometric analysis from the perspective of rural household to empirically study microfinance in underdeveloped regions of China and to answer the following questions. Can Microfinance really enhance peasants' access to credit markets, or can it help the peasants to meet their credit needs? What factors will affect the demand of credit of rural household? What will be the impact on the rural household with the development of microfinance? Finally it puts forward ideas on the innovative reform of peasant household microfinance in the modern era to promote the healthy development of rural microfinance. This paper is divided into six chapters:The first chapter introduces the research background, purpose and significance of this paper, reviews the related literature at home and abroad, makes clear the train of thought, innovation and methods of this research, and points out the need for further study.The second chapter is primarily summarizes the path line of the rural microfinance in underdeveloped regions of China, describing the transition from the Plan to the Market, from the institutions to the clients.The third Chapter firstly inspects the situation and the causes of no equilibrium of supply and demand in rural financial market of China, analyzes the basic features of the microfinance demand in the surveyed areas, and indicates the imperative of financial innovation and the innovation of microfinance.The fourth Chapter empirically studies the factors affecting the demand of microfinance based on the characteristics of the rural household. It firstly raises theoretical assumptions on factors that affect the decisions of the demand for peasant household microfinance. Then, it analyses factors affecting demand for credit by single factor and econometric analysis with the data from surveyed areas and the results have been discussed.The Chapter five objectively evaluates the impact of microfinance on the income of peasants with the data of Western Provinces and the surveyed areas after describing the supporting effect on the increase of peasants' income. And then it explores the welfare effect, consumption effect, women effect of microfinance to peasants.Chapter Six is the conclusions and policy recommendations in this paper. On the basis of the previous paper, it mainly proposed a series of micro-credit policy recommendations for the development of rurul microfinance in China's underdeveloped rural areas.