The Study On Factors Affected Farmers And Herdsmen Financing Demand Of Inner Mongolia Farming- Pastoral Ecotone

The transition zone between cropping area and nomadic area in Inner Mongolia is economically underdeveloped. Due to its particularities and a hybrid nature in terms of natural conditions and the production structure, many problems have existed in this poverty-stricken area for a long time. For example, the man-land relationship is not harmonious; the income of fanning and grazing households is lower than that of households in agricultural areas; and natural resources are worse than those in pasturing areas. Moreover, favorable policies benefiting farmers and herdsmen cannot be promoted according to standards in this area. From the perspective of the overall economic society, the transition zone is featured with a vast land, diversified ethnic groups, a fragile ecology, and an underdeveloped economy. In this condition, operating costs and risks of local financial institutions are increased. As a result, this area has few financial institutions and available funds. In most parts of the transition zone, modern financial service is even unobtainable. The lack of financial service in the transition zone has become a bottleneck impeding local economic development.This paper is based on fundamental economic and rural financial theories. Typical areas in the transition zone between cropping area and nomadic area in Inner Mongolia are visited and surveyed, and methods of descriptive statistics and logistic model construction based on acquired data are applied to analyze the current status of financial demands and influencing factors. The research shows that fanning and grazing households in the transition zone have substantial financial demands; rural credit cooperatives are the first financial choice for local households, and private lending is an effective supplement whose growing trend should not be ignored; and the proportion of consumption loan or production loan varies among different regions. This paper uses SPSS to conduct a regression analysis on relevant indicators in terms of household population, operation status, and economic environment context. Factors such as total population of households and household expenditure have a significant positive influence on the financial demands, while factors including family income, non-agricultural industries, and the interest rate of private lending have a significant negative impact. According to analysis results and the conclusion, this paper makes policy suggestions from the three perspectives of government, rural financial institutions and households in consideration of the development status in the transition zone. It is hoped that these suggestions will support the further development and improvement of the local financial system, so that in the future it will better serve the agriculture, farmers and rural areas, as well as animal husbandry, herdsmen, and pasturing areas.Main contents of this paper are arranged in five parts:Chapter I is an introduction. It introduces the background and significance of this project in brief. In addition, main research contents, methods and innovations of this paper are put forward based on a review of related studies both at home and abroad.Chapter II defines the theoretical basis and relevant concepts. Based on existing studies, this chapter makes a thorough analysis of theories on financial demands, and defines relevant concepts in order to establish a theoretical framework.In Chapter III, a descriptive statistical analysis is carried out to study household features and financial demand status in the transition zone. Data on household structure, operational type & size, and income level collected from the survey is processed to analyze features of fanning and grazing households. Then data concerning financial purposes and financial channels is processed to understand the financial demand status. Finally, relevant results are summarized.Chapter IV describes an empirical test. An econometric model is built. Variants in the model are analyzed via statistical software in order to identify significant factors influencing financial demands in the transition zone. Test results are analyzed and summarized.In Chapter V, a conclusion is drawn and policy suggestions are made. A summary of the research is carried out; meanwhile based on the conclusion, corresponding policy suggestions are proposed from the three perspectives of government regulation, rural financial institutions, and local households.