Motivation Of Members Involved In Rural Mutual Cooperatives And Influencing Factors

As an induced institutional change, rural mutual financial cooperatives(RMFC) based oninformation advantages, guarantee advantages and transaction cost advantages, effectivelyalleviate loan difficulties for farmers. In order to connecting with the reality of agriculturaldevelopment closely, Zhejiang Province has limited the members of PMFC to the identity of themembers of the farmers’ specialized cooperative organizations. This system is designed to adjustsurplus and deficiency through RMFC. In this process, the members who actually participate inRMFC have the symmetric information in the local market, which is the topic of this paper. In theprocess of adjusting surplus and deficiency, members have characteristics which are key factorsthat determine RMFC orderly operation.Firstly, the paper makes theoretical analysis of the motivation of members to participate inrural mutual cooperatives and designs field research programs; Secondly, by using two-stagesampling method,121members have been selected from four RMFC; then, with the multivariatestatistical analysis method, it makes the empirical analysis from the selected samples; Finally, itmakes conclusions and recommendations for policy.According to the theoretical and empirical analys is, we draw the following conclusions:(1)members have multiple sexual motivation;(2)Participation motivation of members is savingand loaning, but motivation of loaning is stronger than that of saving;(3)policy support formembers is limited. According to the findings, the paper proposes the following policyrecommendations:(1)improve the professional quality of the staff;(2)to encourage rural mutualcooperatives to establish peer lending mechanism.