An Empirical Analysis On The Availability And Use Effect Of Small-scale Credit For Farmers In Underdeveloped Areas

The main problem of the management of peasant households in less developed areas of China is the shortage of their own savings.It is difficult for those peasant households to raise incomes when they living on a meagre income from cereal crops,which causes the poverty in less developed areas.Therefore,the emergence of micro-credit effectively flows funds to hundreds of millions of peasant households,which not only alleviates the supply constraints of rural finance in less developed areas of China,but also brings opportunities for peasant households to increase their incomes.Meanwhile,it is due to the unique technological innovation and institutional arrangements that micro-credit plays an significant role in the rural financial field in the vast poor areas of China.The main content of the thesis makes use of the data obtained from the investigation of peasant households' micro-credit in one of the thirty poor counties in Shandong province-Ningjin county,which aims at empirically analyzes the availability and application effect of micro-credit for peasant households.The specific analysis as follows:The first part is bout the study on the availability of peasant households to micro-credit.Firstly,through investigation,this paper analyzes the demand of micro-credit for peasant households,and the supply of micro-credit to peasant households by local Rural Credit Cooperatives in Ningjin county.Secondly,through descriptive statistics,this paper analyzes the basic characteristics of the peasant households,and finds out the demand of micro-credit for them and the impact on the availability of micro-credit.Thirdly,through the establishment of binary Logistic regression model,this paper carries on the empirical test on the basic characteristics of peasant households and sorts out the availability of micro-credit for peasant households.The second part is bout the study on the application effect of micro-credit for peasant households.Firstly,through a brief correlation analysis of two variables of micro-credit loan amount and per capita income of peasant households in Ningjin county form 2012 to 2016,this paper explains the micro-credit affects the increase of peasant households' incomes.Taking the difference of per capita income of peasant households between 2016 and 2017 as the explained variable,and taking the group of variables which includes the loan amount and the basic characteristics of the peasant households who obtain the micro-credit in 2017 as the explanatory variables,this paper summarizes the impact of the development of micro-credit on peasant households' incomes through the empirical analysis of multivariate linear regression model,and illustrates the effect of using micro-credit.The last part puts forward some feasible suggestions on the development of micro-credit in less developed areas of our country on the basis of the study above all,which aims at promoting a healthy and sustainable development of micro-credit in less developed areas of China.