Research On Borrowing Behavior Of Rural Households With The Transformation Of Production

As a traditional agricultural country, we have the large rural population, the ruraleconomy is very important to the development of national economy. With theadvance of the socialist market economy, economy and society develop steady andrapidly, national comprehensive strength and the people’s living standards haveimproved significantly, however, urban-rural income gap has widened, the issuesconcerning agriculture, rural regions and peasants are outstanding, restrict thedevelopment of national economy. At the same time, the vast rural areas are in aperiod of transforming from traditional agriculture to modern agriculture, theproprietary business develops rapid, there are more and more farmers go out to work,in this process, farmers spend more and more money on the agricultural equipment,depending on own accumulation has failed to meet their needs for funds, the ruralfinancial is particularly important to the development of the rural economy. Therefore,from the point of transformation of production mode, further research on theinfluence factors of farmers’ borrowing behaviors has profound theoretical andrealistic significance.Due to the particularity of the agricultural production, the transformation ofproduction mode of Jilin Province also reflects its own characteristics. Farmers havestrong borrowing willingness, the borrowing amount is small and obvious seasonal,but formal financial institutions have stringent vetting and complex tediousprocedures for loans. Therefore, farmers have difficulty in obtaining loans. From thecurrent situation of the financial supply and demand, the rural credit of Jilin Provincemanifests as lack of credit, and can’t meet farmers’ needs for funds.This paper used the field survey data of Songyuan by Jilin Province rural financial project group, through the statistical analysis on the basic characteristics ofthe farmers’ borrowing behaviors, we find that the sources of farmers’ income arediversified trend, although the agricultural production income is no longer the onlysource of farmers’ income, but it’s still the main income of family, the loans aremainly used for agricultural production, second used to buy and maintain the house,non-agricultural operation, and the most of loans derive from informal channels,borrowing from friends and families is the main manner.From the point of transformation of production mode, constructing the Logitmode to empirical analysis on the survey data, the result shows that, the age ofhouseholder, land area per capita, total household assets, build value, wage incomehave significant negative impact on farmers’ borrowing behaviors, agriculturalproduction income, plant cash and build cash have significant positive impact onfarmers’ borrowing behaviors, the number of migrant workers in the family andnonagricultural operating income don’t have significant impact on the farmers’borrowing behaviors.All farmers are divided into two groups of agricultural production andnonagricultural operation according to the mode of production, their borrowingbehaviors are estimated respectively through the Logit mode. For the farmers ofagricultural production, land area per capita, total household assets and wage incomehave significant negative impact on farmers’ borrowing behaviors; plant cash andbuild cash have significant positive impact on farmers’ borrowing behaviors. For thefamers of nonagricultural operation, total household assets has significant negativeimpact on farmers’ borrowing behaviors, plant cash has significant positive impact onfarmers’ borrowing behaviors. Based on this, we decompose and analysis the factorscausing the differences between the farmers’ borrowing behaviors through theexpanded Oaxaca—Blinder decomposition method, the result shows that, the effect ofthe differences of Individual endowment is only20.15%, but financial market factorsexplain79.85%of the differences of borrowing behavior, therefore, there are stillserious financial repression or financial constraint in the rural financial markets ofJilin Province. In this regard, in order to further enhance the peasants’ income level ofJilin province, it should be focused on how to correct financial market factors, reduce the credit constraint.