Family Assets,Social Capital And Farmers' Financing Preference

The improved rural revitalization and the development agricultural rural modernizations have constantly changed the production and economic concepts of farmers in China.Rapidly increasing demand for farmers' funds is observed against the background of profound changes in rural structure and economic environment.However,the current rural financial supply model and service system are more difficult to meet the financing needs of farmers,especially the problem of financing constraint.The shortage of funds seriously inhibits the development of agricultural economy and the increase of farmers' income.Consequentially,based the improvement of farmers' financing demand and rural financial market environment,the establishment of an appropriate financing mechanism accorded with the present situation of China's rural social development and the characteristics of farmers'financing has become a key issue in the theoretical research and policy.In this work,financing preference of farmers' financing behavior is investigated in combination with the current situation of the dual supply structure of formal and informal finance in China's rural financial market.The study provides a strategy to promote the alignment of financial resources with farmers' demand,which can also serve as a reference for improving the efficiency of farmers' financing and optimizing rural financial structure.Based on the sample of 3280 households in China Family Panel Studies(CFPS)database in 2018,this paper selects the family asset structure and social capital which reflect the rural economic and social environment as the research starting point,and then analyzes the influence of family assets,social capital and their interaction on farmers' financing preference by using multi-ordered probit model test.The research results show that:on the whole,farmers' financing in China prefers informal finance,especially the preference for friendship loan between relatives and friends;Taking into account the structure of household assets of farmers,the value of housing assets,financial assets,productive fixed assets and consumer durables owned by farmers significantly enhances farmers' financing for formal financial institutions such as banks,while the increase of the value of farmers' land assets will increase their preference for informal financing.From the perspective of farmers' social capital structure,the improvement of cognitive social capital helps farmers to obtain formal financial credit support,while structural social capital helps to improve the availability of informal financial loans for farmers;Considering the influence of the interaction between the household assets and social capital structure on farmers'financing preference,housing assets and structural social capital has a negative effect.In addition,the interaction between land assets and cognitive social capital has a positive effect on farmers' financing preference,while that between land assets and structural social capital has a negative effect.Moreover,the interaction between productive fixed assets and structural social capital has passed the significance test in negative direction.