Research On The Impact Of Household Assets On Farmers' Lending Behavior

With the deepening of rural finance in China,the problem of farmers' loan difficulty has been improved,especially after a series of effective policies such as the promotion of good seed subsidies,the subsidy of agricultural machinery,the abolition of agricultural tax and the regulation of the price of agricultural products,the living standard and the stock of rural assets have been steadily,improved,and the farmers' credit constraints caused by the lack of property mortgage are to some extend relieved.Based on this,this paper reviews the domestic and foreign related academic achievements from the influence of family assets on the loan of farmers,the scale of farmers' lending,lending channels and its influencing factors,and reviews the theory of credit constraints,transaction cost theory and financial inhibition theory.From the perspective of the dynamic distribution of the types of farmers' assets structure,this paper analyzes the impact mechanism which has an effect on the farmers' lending behavior.This paper studies the influence of household assets structure on Farmers' lending behavior by using the data from the 2016 China Family Panel Studies(CFPS).We use the data of land assets,real estate,financial assets,productive fixed assets and durable consumer goods as major variables,and choose the age,household sex,the level of education,social capital and family size,per capital income and the ratio of non-agricultural income which accounts for total income as control variables to analyze and study the influence.Through the econometric analysis,we can find some results,and the results are as follows:Firstly,financial assets effect the overall loan availability negatively,but the property to the overall loan availability is significantly positively related with durable consumer goods and real estate.In addition,productive fixed assets and land assets have positive correlation but not significant to the overall availability of loans.Secondly,compared with the quantitative analysis of the availability of formal and informal lending,we found that the availability of financial assets to formal and informal lending is negatively related,and productive fixed assets,durable consumer goods,housing assets and land assets have more stronger effects on the availability of formal lending.However,social capital has higher availability to informal lending than formal lending.What's more,age,gender,household size and per capital net income of households have a positive impact on formal and informal lending.Finally,the regression analysis of the formal and informal lending scale shows that the financial assets are negatively related to the formal and informal lending scale,and the real estate has a more significant positive correlation to the informal lending scale,and the productive fixed assets,durable consumer goods and land assets are positively related to the regular lending scale.Based on the the results of the study,the paper puts forward some suggestions:one,rationally configure the household assets of farmers and explore the innovation of farmers'guarantee mode;two,improve the awareness of the rights of farmers' assets and accelerate the legal confirmation of rural assets;three,standardize the informal lending market,improve the system of family assets audit,and four,perfect the laws and regulations system to realize the conversion of asset and financial value.