A Study On The Effect Of Geographical Environment On Farmers Financing Ability

The development of rural economy is an important part of Chinese prosperous economics, and the maturity of the rural financial market determines the rural economic development level. In the modern economic life, capital is the necessary foundation of economic prosperity and promoting consumption. Therefore, the maturity of rural financial market impact directly farmers’ ability to raise capital in production and consumption in their daily life. And it also influence the solution of farmers’ sustained increase in rural income.On the other hand, farmers always produce the fund shortage problem in consumption in their daily life, then farmer’s financing ability in relation to whether the farmers can satisfy their consumer needs, and improve their own welfare, and pull China’s domestic demand through the farmers’ spending power. Therefore, the research of present situation and influencing factors of farmers financing capacity is so important to solve farmers financing capability problems.The existing domestic and foreign study in financing capacity study, scholar usually find the influence factors from farmers own characteristics and quality, such as family population size, householder culture level, family income level, family fixed asset amount, the household production structure of farmers. But few people put the geographical environment factors into analysis.From the perspective of geographical environment, put geographical factors into study models, this paper will discusses how the geographical factors influence peasants financing ability. With the development of the geographical finance, many scholars began to study the relationship of geography and the rural finance. Especially The theory of farmers by Professor Xiaojian Li, give me so much reference to study this issue.In order to consider geographical environment factors roundly, the connotation of the geographical environment is expanded, it contains physical geographical factors and social economic and cultural environment factors whose differences can be aroused by physical geographical factors. Using the binary logistic model to make Empirical analysis, the dependent variable will be whether farmers financing. The independent variables include six geographical factors and7farmers own characteristics and quality factors. The empirical results show that, the distance between village and city, the household production structure of farmers and the main source of income are the significant effects to famers financing ability.The main content of this article includes:(a) summary about Literature at home and abroad on farmers financing behavior and behavior Combined with geographical environment.(b)Construct the theory frame to analyze.(c)Using questionnaire survey data for statistical description, using binary logistic model to empirical analysis, the find out the significant factors which influence farmers financing ability and analyze why.(d) based on the basic conclusion,put forward some suggestions to construct a rural financial organization system which can meet the financing needs of farmers and more efficient. In hope to provide reference to build a rural financial system which is effective regionalization, hierarchical, differentiation.