Family Wealth,Social Network And Farmer Financing Channel Selection

In the 21 st century,China's economy has developed rapidly,and farmers have benefited greatly from reform and opening up.By the end of 2018,the per capita annual income of Chinese farmers has increased at an average annual rate of 18.6%,creating a share of the world's rural economic development.The miracle of "Chinese style." Along with the increase in the income of farmers,the demand for funds of farmers has reached a new height.However,due to the lack of effective collateral and the difficulty of collecting information on farmers,the rural financial problems have also been raised.According to statistics,at present,the phenomenon that farmers in China are subject to credit restrictions is more common.There is a general gap in the provision of rural financial services.The gap between rural supply and demand is still increasing.However,farmers' credit restrictions have adverse effects on farmers' income and productivity.How to solve the problem of farmers' financial needs is the starting point and key to solving rural financial problems.Therefore,research on the financing needs of farmers,and clarify the tangible collateral of farmers-family wealth and intangible collateral of farmers-the impact of social networks on farmers' financing behavior and its impact mechanism is significant for solving rural financial problems.significance.Based on the above background,this paper uses the survey data of CHIP2013,from the perspective of farmers' financing needs,taking the household wealth and social network as the entry point,and using probit,ivprobit and biprobit models to analyze the various factors affecting the choice of farmers' financing channels.The following conclusions are drawn: First,the different types of household wealth of farmers have significant influence on the choice and availability of their financing channels.Specifically,the demand for borrowing of households with high liquid assets is small,and the average value of non-liquid assets and durable goods.High farmers are more inclined to obtain loans in an informal way,while farmers with high financial assets and operating assets are more inclined to obtain loans in a formal way.Second,social networks increase the demand for formal and informal financing of farmers;Family wealth has increased the informal financing needs of farmers,but the impact on the formal financing needs of farmers is significantly negative.Fourth,the impact of social networks on formal financing and informal financing of farmers isreflected in the complementary effect,and the formal financing of household wealth to farmers.The impact of informal financing is embodied as an alternative.According to the empirical conclusions,starting from the three aspects of farmers,rural financial institutions and the government,the following policy recommendations are proposed: First,to improve farmers' ability to obtain loans and foster farmers' social networks;second,to provide diversified and differentiated financial services and strengthen Financial innovation;Third,the government needs to focus on building a rural credit system,improve agricultural insurance,and establish a credit risk dispersion mechanism for farmers.This paper studies the impact of farmer's tangible collateral—family wealth and intangible collateral of farmers—the social network on the choice of farmers' financing channels,which is conducive to perfecting the research of predecessors and making up for relevant research gaps.