Research On The Influence Of Credit Behavior On The Income GAP Of Farmers

In China,with the regime of distribution according to work remains dominant and multiple modes of distribution coexisting,the party and government have spared no effort to deepen the reform of income distribution system,and the pattern of income distribution of Chinese residents has been gradually improved.Income inequality however is still an important factor restricting the balanced economic development,which is mainly manifested in the income inequality between cities and the countryside,within cities,within the countryside and between regions.As the proportion of residents' income in the national income distribution continues to rise,the composition of residents' income has shifted from a single to a diversified one,and the income gap between urban and rural areas,within regions and among residents have continued to narrow.Existing studies pay more attention to the income inequality caused by the difference between urban and rural areas or regions.In fact,there is also a significant income gap between rural households.Although the income of rural residents in China is increasing year by year,the income growth of rural residents has been faster than that of urban residents for eight consecutive years,and the consumption ability of rural residents has been further improved,there is still a phenomenon that the income of rural residents keeps increasing and the income gap within rural areas continues widening.Income inequality among rural residents should not be underestimated and will be an important challenge to the steady development of rural economy.The reason for this internal income gap is that the income growth rate of rural households in different income groups is not the same,which is mainly reflected in the income growth rate of high-income households is higher than that of low-income households.It is not easy to reduce the income gap in a short period of time.From the perspective of farmers,this paper explores the influence path of their borrowing behaviors on income gap and analyzes its internal mechanism,and uses micro-survey data to test the mathematical basis of farmers' borrowing ways and borrowing purposes on income gap.Based on the above facts,the thesis is written in accordance with the research paradigm of economics: firstly,an analytical framework is established for the thesis based on relevant research theories;secondly,a micro-foundation is laid for the thesis through empirical research;finally,policy suggestions are put forward based on the research results and realistic background.Under the framework of this analysis,based on the existing research results at home and abroad and the reality of the development of rural areas in China as a starting point,in order to alleviate the contradiction of the income gap between farmers as the goal,we implement the economic research process.The theoretical analysis part of this paper includes three aspects.First of all,sorting and summarizing the research status of the influential and newly published literature in the field.Then expounds the main research results of rural household economic theory,rural finance,financial development and income distribution theory,and understands the formation process of income gap from the theoretical level.Last,gives an economic explanation to the basic concepts of the borrowing ways,borrowing purposes and income gap which are the main research objects,and analyzes the internal influence mechanism of the borrowing behaviors on the income gap of farmers according to the existing research theories.The empirical analysis part of this article includes describing the status of rural financial supply and peasant household income gap from the macroscopic level,making a descriptive statistics analysis of the rural farmers' borrowing channels and purposes and income gap in sample data(Chinese Family Panel Studies)from the micro level.Further,using STATA software to adopt quantile regression empirically test the impact of the borrowing behavior on the farmers' income gap based on the survey data of 2016 rural samples,and using the Recentered Influence Function regress to the lending to testify the impact of the borrowing behavior on farmers' income gap from the overall effect,structural effect of income and regional effect level.In the part of strategy research,combining theoretical analysis and empirical results,this paper puts forward policy suggestions from the perspective of rural financial development and farmers' borrowing and lending,which can further alleviate the contradiction of farmers' income gap.After all the above studies,the main conclusions are as follows:(1)On the whole,the effects of formal financial lending,informal financial lending and housing loan availability on farmers' income are different in different quantiles.The income effect of formal finance and informal finance borrowing for low-income peasant households is negative,and the loan funds obtained to make up for consumption expenditure or financing have a positive impact on income to some extent for middle-and high-income peasant households.The living loan to purchasing and constructing house improves the welfare of the low-income peasant households,while it has the slighter effect on the middle and high-income peasant households.(2)In the lending channels,formal financial lending expands the income gap of farmers,while informal financial lending plays an insignificant role in alleviating the income gap of farmers.The loans are used to purchase or construct house,which account for the majority of living loans,have alleviated the income gap between farmers.(3)The impact of formal financial lending and informal financial lending on the operating income gap is positive and significant,and house loan can alleviate the operating income gap.Property income is not the main source of farmers' income.According to the estimation results,formal finance and informal finance loan play a negative role in the property income gap,while house loan expand the property income gap of farmers.(4)The effect of house purchase loan on alleviating the income gap between farmers in mid-west area is more obvious than that in eastern regions of China,while the regional difference between formal and informal finance on the income gap between farmers is smaller.Accordingly,the policy suggestions put forward in this paper:(1)Give full play to the coordinating role of formal finance and informal finance in rural areas.(2)The government and financial institutions should actively guide "financial demonstration households" to impart successful experience of correct and efficient use of financial resources to small farmers,so as to encourage them to choose appropriate investment projects.(3)Reducing the household living loan interest rate can improve the borrowing enthusiasm of farmers,but attention should be paid to prevent the occurrence of overindebtedness causing by inter-temporal effect of multiple borrowing.(4)The government should assist financial institutions to strengthen supervision over the whole process of financial activities,so as to ensure the formal use of financial resources and reduce the incidence of non-performing loans.And establish a sound regulatory system as soon as possible for the small scale informal financial institutions and new financial institutions to protect the rights and interests of farmers and financial market stability.(5)Cultivate new agricultural operation subjects to drive the development of small farmers.The new agricultural subject is easier to obtain loan funds from financial institutions than farmers,and can provide job opportunities for small farmers to improve their welfare.Peasant households can not only get operating income but also share out profits by participating in the operation of new agricultural entities as shareholders.(6)With the continuous advancement of agricultural modernization,the requirements for the quality of peasant households are rising up.However,the low level of education in rural areas,namely the lack of human capital,hinders the economic development.Therefore,the government should constantly strengthen the financial investment in basic education,vocational education and financial education.