An Analysis On Determinants Of The Specialized Coopertive Organizations Of Farmers Credit In Northern Area Of Jiangsu

With the development of the market economy and the depth of the opening up and economic reforms, rural economy has changed a lot. More and more farmers are taking part in the market activities, which makes farmers face much more challenges. It causes the weak farmer families be placed in a disadvantaged position during the competition with other main body of strong market. So we suffer great loss of benefits. In order to solve the contradiction between household small productions with the ever-changing large markets and reduce the risk uncertainty in the peasants participating in the competition and raise a bargain efficiency, we must have an agency, which can on behalf of the peasants directly and sincerely. The specialized cooperative organizations of farmers (SCOF) start appearing and develop quickly. SCOF plays an important role in effectively connecting farmers and market.With the radical change of market conditions, SCOF suffer dual restriction from resource and market. The production of modern agriculture must completely face market which makes capital income and expense and investment unbalanced. SCOF itself cannot meet both ends meet. SCOF need a mass of capital in the improvement of technology and equipment, the deploitation of market, the collection of information and the spread of scope. But not every SCOF can obtain formal and informal credit, there are so many factors impeding SCOF to take the credit. This paper mainly studies the factors that would impact SCOF to obtain the credit so that to provide the real situation of the rural credit and feed the information to the development of SCOF.According to GDP, the development of SCOF and some circumstance of five cities in northern area of Jiangsu, the paper used the credit data and SCOF character data investigated from 2005 to 2007 of 20 SCOF that randomly selected from these five cities. Both qualitative and quantitative methods are used in this study. This study analyzed the factors affecting formal and informal credit separately. Qualitative analysis mainly summarized the possible impacts of each factor and obtained the possible direction of such impacts. The methods of quantitative analysis include the single factor analysis and multi-factor analysis. We use one econometric model, namely Tobit model to study what are the factors determine whether SCOF could have access to credit service or not.The major findings of the study are: SCOF mainly depended on the informal credit source, from the view of SCOF, the size of fixed assets and the year of establishment are remarkable factors to influence SCOF to obtain credit. To deal with the current credit problem in SCOF, it need to take the below three list of the reform. At first, it needs to reform the credit institution of the rural financial institution including the collateral requirements for SCOF, especially strengthen the supervising and the administration of the institution. The second one, it needs to regularize and guide the rural informal credit organization to reasonably scheme own capital to develop SCOF and rural market. At last, SCOF must strengthen the construction of organization, the improvement of management system and profit ability, especially the accumulation of capital. On the other hand, in order to obtain credit, SCOF must perfect financial system, strengthen the credit awareness and improve the credit that is from financial system.