Studies On The Borrowing Behavior Of Rural Households

Rural finance is essential for the rural economy. The rural householdhas a small economic scale and is incapable of accumulating capital as anindependent economic entity. So the economic development of ruralhousehold needs an external funding support. However, because of theincomplete rural financial system, a large number of rural capital outflowsto the city, which restricts the development of rural economy seriously.This study analyze the rural household credit behavior based on ruralfixed observation data of Liaoning province in2000-2008, reflecting ruralfinancial situation and the characteristics of the rural credit market fromthe micro perspective. And according to this, suggestions are proposed toimprove the rural financial market.The literature review is divided into two parts of theory and the statusquo elaborated. The theoretical aspects review the significance of financialdevelopment on economic development, the course of development of therural financial theory and corresponding advocated rural financial systemand policies, analysis of the reasons of the dual structure phenomenon andthe interest rates in rural financial market. The status quo elaborated partdescribed the characteristics of China’s rural financial market. On this basis,further specifically summarizes the farmers behavior theory and farmerscredit behavior characteristics, and pave the way for analysis on Liaoningfarmers’credit behavior below.The next chapter analyze rural household credit behavior from the prospects of whole province, the eastern，western，southern and northerndistract of Liaoning province, and different types of income ruralhousehold. It describes the characteristics of the level of crediting,borrowing source, the purpose of crediting and their change trends.Beginning from the source and characteristics of rural householdcredit demand, applying the econometric model, describing the cause andcharacteristics of the demand. The factors of the farmers’ educational level,interpersonal relationship status and fixed assets value play important roleson the formation of credit demand.The last chapter is the conclusion and political suggestions. Putforward to establish a commercial rural financial system, to improve thesituation of asymmetric information and problems of transaction cost，andto increase the supply of credit.