An Analysis On The Decision-making Behavior Of Peasants' Micro-credit Demands And Its Influencing Factors

Micro-credit is the key issue which have been discussing for a long time. Great achievements have been made in the researches on micro-credit all over the world. Actually, the development of micro-credit in China have benefited from the experience in other developing countries and the China's traditional civilian loans, which based on the special features of social structures and traditional cultural in China. But few studies are from a different angle—Social Capital. And even fewer studies have selected a larger sample size to discuss the household's micro-credit by empirical tests. Meanwhile, it produced substantially positive effects in allocating financial resources, improving rural financial service system, stabilizing the rural financial market.This article will develop the study of the rural micro-credit based on the three theories:"Information Asymmetry", "Financial Repression", and "Financial Deepening", and also researches on the peasants' micro-credit all over the world. Then, the paper will discuss its development in China, and clarify the operation mechanism of micro-credit in rural credit cooperatives. Particularly, we describe the households' micro-credit demand in underdeveloped regions with the backward economy area of main provinces in China as samples. And then, our discussion is based on hypotheses:"Rational Man", "the Pattern of Difference Sequence", "Circle Structure of Households", which helps us to define the social capital in China. This paper will build the theoretical models of decision-making behavior of peasants'demand and estimate the positive and negative effects of factors on the its demand. This paper uses SPSS16.0 with two-step analysis of Binary Logistic Model to analyze the factors which influence the demand of micro-credit and estimated the impact on the micro-credit demand. Moreover, we use one dependent variable——human expenditure. From the statistical results, we can see that:the diversity of the farmers and the multi-level credit demand determine the micro-credit which should be adapted to the characteristics of the rural economic development; the income, borrowing record, ect. which influence the households' demand of micro-credit; subsiding farmers to support micro-credit; establishing farmers credit management system; increasing farmer micro-credit potential demands from many aspects; in addition, micro-credit institutions and all types of economic organizations should be allowed to get the access to the rural financial market to expand supply channels of the rural micro-credit.This research is part of the academic program—Rural Households'Financial Cooperative Activities in Western China (70673081), sponsored by the National Natural Science Funds.