Research On Farmer‘s Formal Credit Demand And Formal Creditconstraint Problem Of Liaocheng

Since the reform of the financial system in China, financial coverage has been improved greatly in rural area. However, the investigation of some scholars in recent years, in the vast rural areas of China, serious formal credit constraints still can be found. The formation of the formal credit constraints because of the formal financial sector on the borrower’s credit rationing, in addition, credit constraints from the demand aspect can not be ignored. The borrowers due to various reasons which led to the formation of suppressed demand themselves, demand based credit constraints to formal finance. This paper takes Liaocheng city as the cases empirical analysis credit demand and credit constraints of farmers. We investigate the real causes of the formal credit constraints that farmers facing, in order to solve the problem of farmers’ credit constraints in Liaocheng City, and puts some forward suggestions..In this paper, we based on the survey data of Liaocheng city farmers, using the descriptive statistical study the status of demand for formal credit and households have formal credit constraints degree of rural households in Liaocheng City, and analyze the reasons and influences of the formal credit constraints formation by using Logistic regression model. We reached the following conclusions: 1) There are 9 variables through a significant test. They are: whether or not to do business, family home in migrant numbers, whether the family has long-standing disease, age of householder, householder age, per capita income, farmers annual family income, non-agricultural income to total revenue ratio, the understanding of loan conditions and application procedures and whether having credit loans of rural credit cooperatives. That whether there are sick, whether to do business and farmers annual family income have positive influence the probability of the formal credit constraints; family home in migrant numbers, age of householder, per capita income, non-agricultural income to total revenue ratio, the understanding of loan conditions and application procedures and whether having credit loans of rural credit cooperatives, not also has a significant negative effect on the households have formal credit constraint.all that are the negative probability to influence farmers’ formal credit constraints. 2) some variables did not pass the significance test, shows that the effects of these factors on the formal credit constraints of farmers is not significant. They include: the scale of the family(family population), labor force, social experience, education level of the head of household, skilled, householder land scale, household, family dwellings and financial network distance.In order to solve the problem of the formal credit constraints in Liaocheng City, the conclusion of the study provides important enlightenment.