The New Characteristics In Informal Finance Of The Post Earthbound Society Research

After executing the reform and opening-up policy, the problems of farmers, country sides and agricultures were always disturbing the development of the economy in Chinese rural areas. One of the key ways to solve those problems is the ability to build an effective rural financial market. In a long period of time the formal finance is absence in Chinese rural areas both before and after the executing of the reform and opening-up policy. The underneath finance had changed a lot by the change of the society structure and now cause some terrible troubles.There were not so many scholars using the sociology tools to research this question. Thus, I use the social net theories to investigate this question and use the logit model to analyze 150 investigating data of S province, to work out the new characteristics of rural finance in the post earthbound society.The rural informal finance changed in three points. First, the motivation of rural informal finance was not assistance and became gaining benefits. Second, the obligor and creditor now became independent individuals then the creditor did not concern the obligor’s status in social net. The result of logit model analyzing indicates that the farmers’ own economical situations, the money they used to communicate with their friends and the variation of their social nets become significant factors to their abilities to gain informal finance resources. The amounts of relatives becomes a negative factor. Then it is clearly that the informal financial resources has changed a lot from the earthbound society.Finally, there are some personal policy suggestions to these aspects: rural formal finance, rural informal finance and famers themselves, to make the rural informal finance improve better.