Research On The Influence Of Social Network On The Households Getting Credit

The difficulty of getting loan has plagued the Chinese rural housholds and relevantgovernment departments, restricts rural housholds to increase income and shake offpoverty,therefore,it affects social stability. Although government, financial institutions,academics and relevant parties have paid attention to exploring some countermeasuresto solve the difficulty of getting loan,most of the studies are limited to the existingrural financial system, and rarely study on the difficulty of getting loan from theperspective of social networks.For obvious "pattern of difference" characteristics inChinese rural areas, researching on the influence of Social Network on the householdsgetting credit becomes meaningful.The paper puts Chinese rural housholds as the survey, researchs on the influence ofsocial network on the rural households getting gredit and the influence of the socialnetwork on getting gredit from kinds of channels and the influence of social networkon the rural housholds credit rationing, This paper analyses the current Chinese ruralhousholds social networks and current situation of the rural housholds access tocredit.Based on the theory of social network,the author constructs a measurementmodel of social network with seven indicators:the proportion of gift spendingaccounting for the daily expenditure, network scale, strong network, networkzenith,network gap, network centrality, network heterogeneity,And explores themechanism of the influence of social network on getting credit.I collect413valid datasorted out by the questionnaire to verify the hypothesis of getting credit by the LogitModel and the MNL model, verify the hypothesis of credit rationing by the OLMmodel.The results show that:the higher the proportion of gift spending accounting for thedaily expenditure,the greater the scale of the strong network,the larger the socialnetwork, the greater the probability of non-formal loan, formal credit and mixed credit,the more help for the rural households getting credit;the higher the networkheterogeneity, the much more easy for the rural households to getting non-formal loanand mixed credit,and the more help for the rural households getting credit;the higherthe proportion of gift spending accounting for the daily expenditure,the smaller scaleof the strong network, the lower the probability of rural households is subjected tofinancial credit rationing;The greater the scale of strong social network, the moreserious the farmers being subject to credit rationing,mainly due to the rural households’ insufficient demand for credit;network zenith and the network gap have no significantimpact for the rural households getting credit, but the larger the network gap,the moreadvantage for the rural households getting formal credit.the higher the net top, thelager net difference, the lager the social network size have no advantage in the creditrationing.The higher the rural households’social network centrality is, the lowerprobability of getting credit is,but the probability of the rural households beingsubjected to credit rationing is lower.According to the theory and empirical research conclusions,based on the socialnetwork perspective,the article explores how to build and make use of the socialnetworks well to increase the probability of getting credit and alleviating the ruralhouseholds being subjected to credit rationing from the rural households themselvesand national policies and financial institutions,So that the rural households’creditdemands are satisfied and alleviating the rural households being subjected to creditrationing.