A Study On Financial Constraints Of Agricultual Scalization

Scalization and intensification of agriculture is an inevitable trend adopted by agricultural production mode development in China. Small farmers'economic evolution has occurred while China's economy has crossed the Lewis turning point. Newly rising of agricultural organizations such as family farms, cooperatives, Agriculture co., LTD, etc. has gradually replaced the small farmers becomes the main force of rural economic development. Agricultural machinery, biotechnology, chemical technology and other new technologies also has turned more popular. Applying new production technology and organization maintains entrepreneurship which farmer entrepreneurs should maintain. Farmer entrepreneurs have made a rational choice that happens to be an innovation behavior of traditional agriculture organization, which is seeking to maximize the benefits by expanding the scale. Thus it can be seen, farmer entrepreneurs'behavior is the internal motivation of agricultural scalization. Selections of entrepreneurs'behavior by farmers are rational depending on the calculation of costs and benefits. There are many factors contained to the constraints of their behaviors, but most importantly is financial.Financial development in rural areas of China has led to a certain degree of inhibition by current financial system. So in our country, whether financial constraints will inhibit entrepreneurial behavior of farmers, and further hinder agricultural scalization development? In this thesis, the author elicits the transmission mechanism of "Financial Development-Farmers'active entrepreneurial behavior-agricultural scalization development" by modifying the "E-Q-J" model. Activation and promotion would occur once the financial costs have been cutting down by eliminating financial constraints. This movement would give a great promotion to agricultural scalization. It follows that financial constraints inhibit entrepreneurial behavior of farmers and hindering agricultural scalization development. However, financial developments bring active driving to them.On this basis,This paper takes the survey data and statistics data of seven counties in Hunan to carry out the empirical analysis.In the Prboit model, the emergence of the entrepreneur behavior of the farmers in the overall sample of the seven counties in Hunan has a significant relationship with the wealth of the farmers.This shows that the behavior of the farmer entrepreneur is restrained by the wealth and prove that the financial restraint restrains the entrepreneur behavior of the farmer. Every sample of seven county shows that farmer's entrepreneurial behavior is a low frequency of occurrence in the areas with less financial constraints and farmer's entrepreneurial behavior frequency is low in the area of financial constraints heavier.Using principal component analysis method of seven counties in Hunan Province of agricultural scale ranking found that farmer's entrepreneurial behavior is a low frequency of occurrence and degree of agricultural scale is low in areas with less financial constraints.Analysis method also found that farmer's entrepreneurial behavior frequency is high and agricultural scale is higher in the area of financial constraints heavier.Form this,Data collected from seven counties of Hunan province with investigation and statistical analysis by the author further demonstrates the theory.