Analysis On The Impact Factors Of Chinese Rural Households’ Credit

Rural finance is the core of the modern rural economy, its development lag has become the important factors hindering the development of the current rural economy. Over the past decade, the central files give more and more attention on rural finance issues,the 2014 No.1 document pointed out that accelerate the innovation of rural financial system, strengthen the duties of financial institutions to serve agriculture, rural areas, and farmers. At the same time, the Third Plenary Session of the 18 th explicitly proposed to develop the inclusive finance, so that the financial reform and development could benefit all people and areas, this has important meaning to promote the integration of urban and rural development, also can bring new opportunities for the development of financial institutions. However, in the implementation of inclusive financial system in the rural areas of our country, just found there are lack of credit soil. Because of a lack of credit consciousness, after the farmers get the microfinance from rural credit cooperatives, intentionally default and not prudent use of loans is widespread, resulting in the rural credit cooperatives face great risks, which is an important reason that peasant household loans difficult, and the rural financial institutions is reluctant to lend for a long time.Credit as a capital to gain trust and trading opportunities, the subject of economic activity can take advantage of the capital to expand the scope of exchanges, improve the ability of continuous trading. Therefore, from the credit perspective, exploring the factors that affect farmers credit, thereby increasing the level of household credit, to solve the sustained and healthy development of farmers’ demand for funds, and promote the development of rural financial sectors to effectively serve agriculture, rural areas, and farmers, has important practical and theoretical significance. In this paper, the rural households’ credit is defined as a two-dimensional credit, namely the willingness and ability of trustworthiness. Articles will study the factors which affecting the rural households’ credit from the two-dimensional credit perspective.This paper studies the farmer’s credit and its influencing factors from the perspective of borrowing, based on the micro data of China Family Panel Studies which published by Peking University in 2011 and using the Tobit model to study th e difference of farmer’s credit evaluation between the formal financial institutions, the relatives and friends as well as the folk lending organizations, and thenusing the Heckman two-step method to make robustness analysis. The empirical results show that the trustworthy willingness of rural households who engaged in agricultural production is stronger than those in non-agricultural production. Household wealth is the achievements of rural households in the past, and has a positive relationship with the farmer’s trustworthy ability. And different demographic characteristics of the households have different influence on the farmer’s trustworthy ability. In addition, the character and income on farmer’s credit is significant in the formal financial institutions,and education is significant in the relatives and friends.On the decisive factors that affect farmers’ credit and its direction, the article puts forward the corresponding policy recommendations.