Study On Rural Households' Investment Behavior

With the implement of the rural households' family contract responsibility system, China's rural households have taken up a basic role in agricultural economy under this institutional arrangement. The rural households have got the controlling right for collocating the resource of the capital and the labor. And also they have already become the most important managerial decision-making unit in the rural society and economy. Since the opening reform and with the deepening of reform process in national administrative, fiscal and financial systems, the rural households have also become the basic unit in the rural investment, and their status are got consolidated.In this paper, the author has established the Hohhot's rural households'short-term investment and long-term investment behavior model with the data of 5 rural areas in Hohhot from 1996 to 2005,which is based on the hypothesis that agricultural household should be regarded as'economic man', to research the agricultural household's behavior of investment in the given institutional environment. Based on the model's conclusions, the paper make some evaluations on the rural households'investment behavior, and also analyses the reasons. In the succeeding chapter, detailed specification was given.