Research On The Impact Of Social Network Capital On Credit Availability Of Farmers In Poor Areas

In November 2013,the Third Plenary Session of the 18 th Central Committee of the Communist Party of China listed "developing inclusive finance" as an important national strategy.In October 2015 after nearly two years,the Fifth Plenary Session of the 18 th Central Committee of the Communist Party of China also clearly pointed out that China has entered the decisive stage of building the moderately prosperous society in all respects,proposed to resolutely win the battle against poverty,and put forward "developing inclusive finance".Strengthening financial services in rural areas is necessary guarantee for achieving this plan.The 13 th Five-Year Plan period is a new period of all-round deepening reform and innovation development of inclusive finance in our country.As difficult problem in rural finance development process,whether rural credit constraint problem can be alleviated reasonably and smoothly,which is not only relates to whether China's new round of rural finance incremental reform can succeed,but also relates to whether China's long-term problems can solve rural finance and small micro financing problems and more relates to the national strategy to realize the moderately prosperous society.In the real rural areas,household credit is an important component of rural finance.Because of particularity production,it needs phased investment large amounts of funds.But due to natural environment constraints,farmers' income is not stable,farmers in poor areas do not have collateral,guarantees and cash flows that meet modern formal financial requirements.This led to the emergence of credit constraints and aggravated the degree of poverty in rural areas.However due to the local culture that has been inherited from generation to generation,private lending between neighbors and relatives seems to be more prevalent in rural areas.This kind of social network capital based on peasant household consanguinity and geography is the foundation which rural informal finance lending depends on.Social network capital can act as collateral,overcome adverse selection problem,reduce transaction costs,etc,so it can effectively alleviate farmers credit constraints problem.Therefore,based on studying domestic and foreign theories,this paper chooses social network capital as the starting point to analyze farmers' credit availability problems.I hope that this paper can enrich relevant theoretical system and provide a reliable theoretical basis for the effective relief of the credit problems of farmers,thus realizing the moderately prosperity of rural and urban areas at an early date.This paper is divided into six chapters.Chapter one mainly introduces background situation of research,explains research purpose and significance,clarifies research ideas,contents,methods and framework structure of this thesis,and points out innovation points and shortcomings;Chapter two analyzes and summarizes the main literature about social network capital at home and abroad,carefully distinguishes the capital connotation and extension,index selection,influence and informal system of social network;Chapter three analyzes the current situation of rural social network capital based on survey data,mainly from three aspects: the basic characteristics of peasant,social network capital and peasant household loan;Chapter four analyzes the influence of social network capital on farmers' credit availability through theoretical analysis and paves the way for empirical research;Chapter five combines data with empirical analysis to increase reliability of conclusions;The final chapter summarizes the full text,which is in response to the introduction of the first chapter and puts forward relevant policy suggestions to the conclusion.Our research results show that social network capital has significant positive impact on the possibility and the authenticity of the credit.When we examine the influence of rural social network capital on different channels credit activities respectively,compared with informal credit activities,social network capital seems to have more impact on the credit activities of formal finance.The age,income,size,labor force and operating assets of household have significant impact on the availability of household credit.Finally,the author combines full text puts forward policy suggestion from government,agriculture finance institution and farmer oneself,hopes government can build rural credit rating system as soon as possible and realizes social network capital collateral soon;Agricultural finance institutions should strive to improve credit mechanism and establish sound rural credit archives;Farmers themselves should actively construct new social network capital to expand the depth and breadth of social network capital application.