| Based on the domestic and foreign research,the theory of financial development and rural finance theory and farmer behavior theory,this paper makes the further analysis on the financial suppression of Shaanxi rural area. We start from the two perspectives of the farmers’ demand and supply of formal financial institutions,and find financial repression is very serious in the Shaanxi rural area,the main feature is included farmers’ ineffective demand of the formal financial institutions and the low level of financial development.What is the degree of financial repression in the rural area and how much welfare will be lost beacause of the repression?This paper use the biprobit model and match model based on the1000surveys of peasant households to analyze the degree of financial repression and the welfare losses. The results show that the degree of financial repression of farmers up to62.16%, net income, net operating income and consumption expenditures are subjected to loss due to financial repression. The welfare level of farmers are significantly impacted. In order to alleviate and eliminate financial repression and improve the welfare level of farmers, we should propose the financial constraint strategy and play the role of government.In addition,We should make the policy adviese based on the increasing supply and stimulating effective demand to realize target of developing the finance and economy in the sound cycle, and finally reach the objective of improving welfare of the the peasant households. |
