The Effects Of Farmers'risk Preference On Credit Rationing From The Perspectives Of Supply And Demand

In recent years,the rural finance of China has made great progress,but "financing difficulty" is still not completely solved.Traditional loads based on collateral set a higher entry threshold for households' borrowing,easy to cause the supply credit rationing(quantity rationing).At the same time,complicated transaction process,the risk of losing collateral and the interference of social relationship make the farmers give up the demand for loans,which is called demand credit rationing including transaction cost rationing,risk rationing and social relationship rationing.According to the research results of scholars at home and abroad,this paper holds the view that farmers'risk preference will have an impact on credit rationing different from traditional farmers.We conduct a questionnaire survey in Shu Yang,Jiangsu Province.From two aspects of supply and demand,it establishes the theoretical model,puts forward the hypothesis and tests the hypothesis according to the empirical analysis of the design scheme and the data,which is based on the comparative analysis between formal credit market and informal market.In the study of the supply rationing,we divide the farmers into four types:"No outstanding formal or informal credit rationing","Only informal rationing","Only formal rationing" and "Both formal and informal rationing".We use multinomial logistic model and the empirical results show that the risk preference of farmers has no significant impact on supply credit rationing.The ratio of family migrant workers has significant positive influence on only informal credit rationing,which the ratio of non-agricultural income has significant negative impact on.The level of financial knowledge has significant positive influence on only informal credit rationing and both two credit rationings.However,the number of relatives has significant negative impact on both two credit rationings.In the study of the demand rationing,the previous literature only classified the farmers into one type of demand credit rationing.This paper argues that the farmers will be affected by all types of demand rationing,of which only the degrees have difference.So we definite the demand rationing by the importance of five classifications.Through the ordinal probit model,we make the conclusion as follow:in formal market,farmers' risk preference has significant negative effects on transaction cost rationing and risk rationing with no significant effects in informal market.At the same time,there is no sufficient evidence to show that the farmers' risk preference has significant effect on social relationship rationing.Otherwise,other variables such as the level of financial knowledge and the family business income accounted for have significant positive influence on risk credit rationing.The more the number of outsiders doing business in local,the less the farmers will be affected by formal risk credit rationing.In informal market,The age,information acquisition ability and regional factors of farmers all significantly have positive effects on informal risk credit rationing.On the other hand,the more ratio of family migrant workers,the less influence the formal transaction cost rationing will have on.The ratio of family business income accounted for will produce positive effect on the formal transaction cost rationing.In informal market,the level of financial knowledge has significant negative impact on transaction cost rationing,which the information acquisition ability has positive effect on.At the same time,the farmer's education,whether the only child,the proportion of family migrant workers have significant positive effects on social relationship rationing but the level of farmers' credit and the amount of fixed assets have negative effects on social capital rationing.