Research On The Influence Of Social Network On Farmers' Financing Behavior

Since the reform and opening-up,China's rural areas have come into a new situation,the economic growth vitality,the farmers' wealth has been accumulated continuously,and the capital demand is increasing.However,the development of rural financial market in China lags behind seriously,and farmers' credit restriction and credit allocation are prominent.At the same time,at present,the rural finance in China is widely suppressed,which restricts the rural economic growth,and causes the small effect of financial support for agriculture.Due to the immature economic development of developing countries,the government has more strict supervision over financial markets and widely adopted interest rate control and fund allocation,leading to financial market prices.The mechanism distorts and the supply and demand structure is unbalanced,and even aggravates the dual financial difficulties.Among them,financial repression forces the poor to face higher loan interest rates and lower deposit interest rates.This"price discrimination"aggravates the inequality of opportunities for farmers,resulting in the"Matthew effect"in financial markets.As far as the rural financial market of our country is concerned,the dual financial system has far-reaching influence and will exist for a long time,which can easily trigger the internal structure risk and the external impact risk.The capital supply of formal financial institutions has a strong exclusiveness,which affects the general equilibrium situation of the financial market and leads to the imbalance of the allocation of credit resources.To a certain extent,the new financial institutions reduce the service threshold of the rural financial market and position it in the quantity.Rationing and transaction cost demand subjects,interest rate sensitive funding gap gradually transferred to the private financial market.Therefore,the government must regulate the behavior of the main body of the rural financial market,build a rural financial system with policy finance as the guide and commercial finance and cooperative finance as the auxiliary,actively promote the construction of diversified financing channels,and form a multi-level.Mutual help rural financial system.At present,the relationship between rural social network in China is a complex system,in which social network has a profound impact on farmers' social behavior and economic decision-making.The combination of relational network across the point can construct social interpersonal relationship and economic behavior order,and social network relationship is an important medium for social capital transmission.At the same time,because the market has come through the development of social interpersonal relationship,the social network is also the basis of individual economic transactions.The degree of social network relationship can determine the nature,form and possibility of achieving the goal,and has an important influence on farmers'economic behavior.Specifically,in the process of farmers' financing,Social network has a different influence on farmers' financing demand,capital availability and financing scale.Among them,the strong relationship is homogeneous,the availability of funds is high,but the scale of borrowing is small,the weak relationship is heterogeneous,and the availability of funds is low but the scale of borrowing is large.With the gradual maturity of urbanization and social security system in China,in the social network relationship,the number of strong relations is gradually decreasing,while the number of weak relations is increasing accordingly,resulting in the deepening of the degree of marketization of rural social development.At present,there are structural changes in the relationship of social network,the network relationship of human feelings in rural areas is becoming thinner,and the social credit relationship of traditional etiquette and law is gradually disintegrating,and the social credit relationship of traditional etiquette and law is gradually disintegrating and constantly transitioning to contractual social network.Collaterals further affect farmers'financing behavior.Therefore,the development of rural finance must reshape the structure of social network relationship,which is of great reference value to break the difficulties of rural financial development and broaden the diversified financing channels of rural finance.Based on the perspective of social network theory,based on 2440 survey data of farmers in 22 provinces and cities in China,and using two-stage Hurdle model and Bootstrap intermediary model,this paper studies the influence mechanism of social network on farmers' financing behavior.The intermediary effect of interest rate in this process is investigated.Through the regression of the specific econometric model,the conclusions are as follows:first,both the strong relationship and the weak relationship have a positive and significant effect on the availability of funds,but the marginal effect of the strong relationship is more obvious.Second,for the non-productive financing demand,the strong relationship and the weak relationship have a positive and significant impact on the financing scale,and the interest rate factor is strong after the introduction of the interest rate factor.The influence of the relationship was not significant.For production financing demand,weak relationship and quasi-weak relationship have positive and significant influence on financing scale,quasi-strong relationship has negative and significant influence on financing scale,after considering interest rate factor,The influence of social network relationship on farmers' financing behavior is not significant.In addition,the regression results of the two-stage model are as follows:in the stage of participation in decision-making,the strong relationship,quasi-strong relationship and weak relationship are positive and significant to the availability of funds;In the stage of quantitative decision-making,the quasi-strong relationship is negative and significant to the farmers'financing scale,while the quasi-weak relationship and the weak relationship are positive and significant to the farmers'financing scale.Third,the social network has had an impact on the scale of farmers' financing.In the process,the strong relation of interest rate alignment has negative intermediary effect,and the weak relation of interest rate alignment has positive intermediary effect.In view of the above empirical research conclusions,this paper puts forward targeted policy recommendations from three aspects,including the construction of diversified rural financing channels,the reduction of information asymmetry and credit constraints,and so on.Standardize the financing channels of strong relationship in rural areas and optimize the scale effect of weak relationship financing;At the same time,we should give full play to the intermediary effect of interest rate in different social network financing channels,realize the important role of financial support for agriculture and small support,so as to alleviate the structural imbalance of rural financial market in China and build a harmonious and orderly rural social network relationship.