On Borrowing Characteristics And Influencing Factors

With the central document "Several Opinions on accelerating the development of modern agriculture and further enhance the vitality of modern agriculture issued by the CPC Central Committee and the State Council" issued in2013,"No.1Document" has focused on the "Three Rural Issues" for teen consecutive years. However, because of the incomplete rural financial system, a large number of rural capital outflows to the city, the borrowing needs of farmers can not be met effectively, which restricts the development of rural economy seriously. With the advance of New Rural Construction and the acceleration of Urbanization, as the main demand of the rural financial market, the status of farmers as first Priority to the rural economy will be further consolidated. Therefore, further research on the farmers’borrowing and debiting demand behavior and further excavation of the factors affecting farmers’ lending behavior will be beneficial to help alleviate the loan hardship for peasants. Furthermore, they will help to improve the management level of agricultural industrialization and to further promote the rural areas’urbanization process.Based on the above research background, this dissertation treat the farmers’ borrowing behavior as research objective to analyze of the conflict between supply and demand in China’s rural financial market. This paper analyzes the current situation of farmers’borrowing of Shandong Province based on the survey data about748households from17cities and counties in Shandong Province. A comparative analysis of lending practices on farmers will be started from the region, age, education level, type, income, etc. And then construct a theoretical model of factors affecting farmers’lending practices based on the research. The Single Factor Analysis and Logistic Model will be used to analyze the household credit demand and its influencing factors. And according to this, conclusions will be reached and suggestions will be proposed to improve the rural financial market. There are six chapters in this paper:Chapter one:Introduction. This chapter mainly introduces the research background and purpose, related concepts definition, including farmers, farmers’ lending practices, rural formal financial and informal financial, domestic and foreign related review on this research field, the research ideas, research methods, possible innovation and shortcomings of this dissertation. Chapter two:Theory basis. This chapter mainly introduces the related theories of this paper, including the rural household and household behavior theory which including the Rational Peasant theory, the Moral Economy theory, the Crutch Logical theory and the other household behavior theories. This chapter also introduces the related theories of rural financial market including Subsidized Credit Paradigm, Rural Financial Systems Paradigm and Imperfect Market Paradigm.Chapter three:Analysis of imbalance of rural financial supply and demand. First, this chapter analyzes the composition of China’s rural financial system. Second, it analyzes the current condition of rural credit rationing and the current condition of rural financial demand. Finally, it analyzes the conflict between supply and demand in rural financial market.Chapter four:The basic characteristics of rural households’ borrowing behaviors in Shandong province. It includes the overall description of the surveyed area, the overall description of the lending behavior by rural households, the borrowing channels and lending rates, the credit scale, borrowing purposes, borrowing period, methods for the repayment of the loan and the cognition to the formal finance.Chapter five:Empirical analysis of influencing factors of the of rural households’ borrowing behavior in Shandong province. This chapter includes date sources and index selection, build the theory hypothesis, and using the household data and Logistic model to analyze the main factors affect farmers’borrowing behaviors.Chapter six:The conclusion and suggestions. Based on the foregoing analysis, this chapter gives the conclusion and proposes some related suggestions separately from the national policy level, the financial institutions level and the farmers’ own level. Finally, research prospects will be proposed.