Efficiency Of China's Western Rural Cooperative Financial Research

Nowdays, establishing a modern rural financial system and improving the integration of commercial finance, cooperative finance and policy finance is very important to solve the "Agriculture, Countryside and Farmer" issues to. As an important part of rural cooperative financial system, the efficiency of rural credit cooperatives has been studied by many scholars. After studying the research made by domestic and overseas scholars, we find they mainly made these studies from the macro perspective of supply, in order to discuss the system of the cooperative finance. At present, there are some scholars who studied the issue from perspective of borrowers'demand. However, few scholars make researches on it from the angle of efficiency of rural credit cooperatives in western backward areas. Thus, this paper tried to analyze the efficiency of rural credit cooperatives from the micro perspective of household's demand, by using empirical analysis. This study will make theoretical and practical contributions to solve the "Agriculture,Countryside and Farmer" issues.On the basis of financial efficiency theory, cooperative finance theory and existing researches related to them, this paper analyses the characteristic of the demand of local household. When we analyses this issue, we take the data obtained from these backward area and fully consider the present economic and financial status in western area. And then, we set the model reflecting the relationship between the household's demand and efficiency of rural credit cooperatives, on the hypothesis of rational person and maximum profit of lender. In this paper, we use log-linear model to analyze the factors explaining the household's demand and factor reflecting efficiency of rural credit cooperatives to find how the former ones influence the latter one. After we study these problems, we finally arrival at some conclusions. They are as follows:First of all, most household have the demand of loan. And it is especially obvious for ones who had the borrowing experience from credit cooperatives before and who think it is hard to loan from it. Secondly, credit cooperatives can't meet the household's demand. That means the reform of rural credit cooperatives doesn't make good sense to satisfy the demand and the efficiency of rural credit cooperatives is still low. At last, this paper makes some suggestions on how to promote the efficiency to instruct the reform of rural credit cooperatives. And we also point out the deficiency existing in this paper and some problems to be solved in the future further study.Special explanation:This study is one of the sub-projects of the project-the research on household financial cooperative behavior in backward area (70673081) supported by National Natural Science Foundation of China.