| It is generally believed that access to formal loans is important to the ruralresidents in developing countries to expand production and consumption smoothinginter-temporal risk decision-making is of great significance, however, widespreadfinancial exclusion has seriously affected farmers’ access to formal loans. In terms ofcities, people in rural areas have low population density, per capita income is low,relatively far from the city, less commercial activities and other features. Since thecharacteristics of climate change and fluctuations in the prices of agricultural products,engaged in agricultural production and management of high risk, strong seasonalfluctuations salient features. These features make the rural financial market, especiallyrural finance in developing countries, there is imperfect credit history and it isdifficult to spread the risks, the lack of the characteristics of effective loan collateraland relatively high transaction costs, a considerable part of the farmers are excludedfrom the formal financial market, is the performance of financial exclusion. Nationalfinancial work conference in2012, Premier Wen Jiabao stressed:"we particularlywant to expedite the settlement of the lack of financial services in rural areas, and theproblem of financing small and micro enterprises." In order to solve this problem, thecentral government have continued to push forward supply reform of rural financialmarket which has been followed for years, and which has achieved remarkablesuccess. Therefore, the study of farmers formal borrowing behavior conducive tounderstand the main factors affecting farmers for financial decision-making, whichhas practical significance of the deepening of China’s rural financial reform and solvethe "three rural" issues. Financial exclusion in this article will be a starting point ofwidespread rural financial markets in developing countries to thinking formalborrowing behavior of farmers in China and its impact on the rural financial reform.In this paper, the People’s Bank of China commissioned the National Bureau ofStatistics in the country’s10provinces (autonomous regions) random sample surveyof about20,000copies of the questionnaire data in2007, based on the analyticalframework of financial exclusion and the informal lending practices of farmers,according to description statistical methods, using Tobit model to analysis financialexclusion’s heterogeneity effect to farmers informal lending behavior and usingHeckman two-step method to overcome the sample selection bias, we have studiedexpansion of financing channels in rural areas have influence on the extent of farmers’ financial exclusion on the basis of empirical observation and using the two-stage leastsquares method to make robustness analysis. We have get the following conclusionsafter analysis: First, rural credit cooperatives credit to farmers, as proxy variablesmeasuring farmers who suffered from the extent of financial exclusion, which haveheterogeneity impact on formal borrowings quantity and civil borrowings number,that is to say, increase the credit amount will increase the number of farmers formalborrowings and reduce the number of farmers folk borrowings. Second, the localprivate lending organizations will be able to increase the number of farmers informalborrowing, and financial information and knowledge can effectively increase farmersformal loan amount. At the same time, consistent with the theoretical research, thereare some alternative between formal financial and non-formal financial activities.Finally, despite the accelerating pace of rural economic development and socialtransformation, but the constraints of the existing rural financial system is not perfect,starting from the village social structure of the differential pattern of positivesignificance to the understanding of rural financial needs, help to enhance the level offinancial services in rural areas from many ways and promote the balancedconstruction of rural financial services. |
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