Research On The Influence Of Social Network And Internet Use On Farmers' Borrowing Behavior

The No.1 Central Document issued in 2019 has focused on agriculture,rural areas and farmers for 16 consecutive years.Farmers are the focus of future rural financial reform and farmers' borrowing behavior is an important part of farmers' economic behavior.Therefore,it is of great significance to study the borrowing behavior of farmers to improve the availability of financial services.This paper systematically reviews the achievements results,based on credit rationing theory and rural sociology theory.A total of 22,363 samples were used from the 4-year data of 3729 rural households in 25 provinces and cities of the China Family Panel Studies(CFPS)to explore the influence of social network and Internet use on farmers' borrowing behavior.Analyzing the main factors and regional factors to farmers of social networks and the Internet of the formal financial borrowing and lending of non-formal finance,according to the influence factors of farmers borrowing came to the conclusion in order to promote farmers financial service availability,meeting the demand of farmers borrowing effectively.This paper use the panel logit model?grouping mean test and hausman test,at the same time,the robustness of the core explanatory variables was tested.There are two main conclusions in this study: Firstly,in terms of personal characteristics and family characteristics that affect farmers' borrowing,gender and household income are heterogeneous for farmers' borrowing behaviors in different areas.However,the degree of education,marital status,family size,and family housing conditions have a positive and significant impact on the availability of household loans,no matter where farmers are and they borrow through formal finance or informal finance;Secondly,as a kind of "invisible guarantee mechanism",social network has significantly improved the availability of farmers' borrowing.The overlap between Internet use and social network information transmission has inhibited the role of social networks in rural household borrowing and has regional heterogeneity.They both can reduce the agency cost of credit rationing by reducing information asymmetry.The impact of Internet use on farmers' lending behavior also has regional heterogeneity,which expands the scope of research on relevant theories of existing rural Internet use.Finally,according to theoretical analysis and empirical research results,this paper putting forward revelation and suggestions from three levels: the government,financial institutions and farmers.At the government level: continue to implement the policy of supporting agriculture and benefiting farmers to narrow the gap in regional lending;form a positive interaction between social capital and related policies;strengthen the popularization and education of rural areas,establish a database and sharing mechanism for rural financial markets,and accelerate the construction of rural Internet financial systems.At the financial institutions level: increase the propaganda of financial products and services from both online and offline;develop farmer agents to meet the short-term microfinance needs of farmers.At farmers level: improve their own cultural level;strengthen their own labor skills;understand the policies supporting agriculture and benefiting themselves.