Analysis On Rural-Households Rural House Construction Fund Gap And Financing Strategy Of Rural Infrastructure In Disaster-hit Areas After "5.12" Earthquake

Post-disaster reconstruction of rural houses plays an important role in restoring Rural-households'production and life, maintaining the socio-economic order stability and healthy development of disaster-hit area, the result of rural house reconstruction will have a direct relationship to the whole reconstruction process. However, Rural-households in disaster-hit areas have lower income, weaker disaster-bearing capacity, in the face of huge reconstruction money, they can not resolve it on its own,and it's urgent for external funding injection to help the smooth realization of reconstruction. However, it's imbalance between fund needs of rural-households and the fund supply of formal financial institutions due to high transaction costs, asymmetric information, imperfect rural financial environment and so on. Therefore, in this context, it becomes very meaningful to analyze the fund gap of affected Rural-households, and investigate the main affecting factors of their financing channels and financing size during rural house reconstruction.This article introduces the rural finance, risk management theory and so on. The author conducts this research based on 370 Rural-households from 4 worst-hit areas in Sichuan Province. Aiming at exploring the fund gap of Rural-households and their financing strategy after "5.12" earthquake. Then, in combination with the premise of risk control, the author proposes targeted and actionable policy recommendations on financial and credit support for post-disaster reconstruction to achieve the goals of increasing financial support for restoring production and livelihood and meeting the fund needs of rural housing of rural-households in disaster-hit areas as soon as possible.The results show that although the Government grants has played a positive role in rural housing reconstruction, fund gap still exists due to the increasing costs in rural house building, the large number of fund needs, singleness of fund sources and so on. In order to analyze the affected factors of rural-households'financing behavior and financing size after the earthquake, this paper conducts corresponding research by constructing binary logistic and linear regression model, The results shows that whether the rural-households have bank loans or not has significant negative correlation with the head of households'age, whereas has a positive correlation with the head of households'education years, household income, other losses; whether the rural-households have relatives and friends lending or not has significant negative correlation with housing losses and family size, whereas has a significantly positive correlation with the head of households' age, household income. The linear regression model about external financing size analysis showed: the head of households'age, household size, household income, whether the house collapsed or not, and the funding gap have a strong correlation with the total amount of rural-households external borrowing. But has a poor correlation with whether the rural-households used their savings or not. Based on the results of the empirical analysis, With a view to gradually increase the rural-households ability to resist risks, this study proposes some related policy recommendations on completing system to improve rural-households'income, increasing the credit funds support of formal financial institutions to rural housing reconstruction, innovating private lending and savings system in rural areas, introducing the social capital to participate in reconstruction and making effort to broaden the financing channels.