A Study On Microfinance Services Of The Yangling Modern Agricultural Demonstration Park

Microfinance in China has made some achievements but there are also someproblems up to now. As the large country in rural population, the increase of incomegap between urban and rural areas is bound to cause many social problems, thusChina has attached more importance to the “Agriculture, Countryside and Farmer”issues and made the first document of the central government continuously focusingon it to guide rural economic development and promote farmers’ income. Economiccannot develop without financial support, but there has been serious financialrepression phenomenon in rural areas, which restricts the rural areas’ sustainabledevelopment of agriculture. Therefore, how to innovate rural financial system is thekey to solve the rural financial funding problem. Since its inception, Microfinancehas made a huge success in some countries and regions. Meanwhile, a large numberof studies have confirmed that microfinance has the capability to promote ruraleconomic development and realize the goal of poverty reduction. Depends on theabundant rural labor force and capital support, China has made sustained and rapidprogress in economy, however it comes with the rapid enlargement of income gapbetween urban and rural areas, whose ratio of the disposable income of urban andrural residents has been more than three times, higher than the highest internationallevel.Yangling is located in the center area of Shaanxi “Guanzhong-TianshuiEconomic Zone（GTEZ）”. As the only state-level agricultural hi-tech industrydemonstration zone in china, Yangling is committed to the special mission endued bygovernment. Relying on the technical support of Northwest Agriculture&ForestryUniversity and according the requirements of “high-yield, high-quality, highefficiency, ecology and safety”, the Yangling Modern Agricultural DemonstrationPark covering100square kilometers is planned and constructed in2008, which wishto form large-scale production of agricultural industry by the build of vegetablegreenhouses and forest tree orchard. And all of these will need a farmer having acertain investment as the basis. However, whether we can solve the problemsmoothly or not lies in what role the financing policy guidance and credit support of peasant household play.Consequently, the thesis selects microfinance business in the Yangling ModernAgricultural Demonstration Park as research object. First, the thesis makes a briefintroduction to the related theory of microfinance. The development of ruraleconomy is subject to its own inherent defect and severe financial repression, so thearticle starts from introducing the evolution of rural financial theory. Then itanalyzes agricultural credit subsidies theory, rural financial market theory andimperfect competitive market theory in turn. Further, the thesis dissects theexperience and lessons in the rural financial practice process under the guidance ofthese theories and points out that the development of microfinance has a certaintheoretical basis. Meanwhile, the thesis illustrates some mature microfinance modeand performance appraisal system internationally, so as to provide support for thedevelopment of microfinance. Based on the successful microfinance experiencegained in the international, our country also introduced the financial innovationproject, but its development and practice in China has a certain complexity. Next,according to the characteristics of the modern agriculture demonstration park, thethird chapter of the thesis makes descriptive analysis of farmers’ microfinanceconditions and characteristics in the zone; the forth chapter of the thesis makes somecomments on the microfinance supply conditions from the aspects of thedevelopment of microfinance, the necessity and efficiency of microfinance supplyand its performance level, as well as its strengths, weaknesses, opportunities andchallenges for the zone to develop microfinance. Then, the fifth chapter makeeconometric analysis on the implementation effect of microfinance from thecontributions and influence point of microfinance acting on the park farmers’ income.Finally, through the analysis above, the thesis puts forward the corresponding policyrecommendations separately from demand and supply level, which strives to providea more comprehensive reference for improving the financing environment of modernagricultural demonstration park.