The Impact Of Social Capital On The Risk Of Farmers' Credit Default

With the continuous development of rural economy,farmers' enthusiasm to expand production and consumption demand is growing day by day.Farmers urgently need external funds to achieve transformation and development.However,the availability of farmers' credit is seriously restricted by the higher risk of farmers' credit default.It is found that social capital can be used as an effective alternative to mortgage to mitigate the risk of farmers' credit default.However,with the change of rural social structure,the social capital of farmers began to break through the circle of kinship and kinship,gradually expand the scope of relationship,and establish the social capital based on geographical and business relationship.Therefore,in the process of deepening the current rural financial reform,social capital can no longer be discussed as a homogenous whole,but should focus on the refinement and classification of social capital,so as to more effectively identify the credit default risk of farmers.This paper takes farmers as the research object,analyzes the influencing factors of farmers' credit default risk,defines the concept of farmers' credit default risk,and distinguishes two types of social capital based on the analysis of social capital system attribute and capital attribute.Based on the data of Shanxi and Shaanxi Province,this paper analyzes the credit demand,default and two kinds of social capital.Using probit model with sample selection,this paper analyzes the impact of different types of social capital on Farmers' credit default,and uses probit model to further analyze the impact of two types of social capital on loan repayment ability and willingness.The results show that: in terms of the impact of social capital on Farmers' credit default risk,instrumental social capital has a significant negative impact on Farmers' credit default,while emotional social capital has a significant positive impact on Farmers' credit default.This shows that the more farmers have the tool type social capital,the lower the possibility of credit default;in terms of the indirect impact of social capital on the risk of credit default of farmers,the tool type social capital has a positive impact on the repayment ability and willingness of farmers,To a certain extent,it can play the role of mortgage substitutes,thus effectively reducing the possibility of farmers' credit default risk;and emotional social capital may provide farmers with borrowing channels other than loans from formal financial institutions,To reduce the dependence of farmers on formal financial institutions,thus increasing the risk of farmers' credit default,from the perspective of indirect impact,emotional social capital has no significant impact on Farmers' ability and willingness to repay loans.Therefore,the study of social capital can not be discussed as a whole.Social capital should be subdivided to distinguish the role of different types of social capital in the credit default risk of farmers.Instrumental social capital can be used as an effective reference index for the expected credit default risk of farmers.The research in this paper is helpful to effectively identify the risk of farmers' credit default,alleviate the credit constraints existing in the rural financial market,improve the operation efficiency of the rural financial market,and promote the development of rural economy.