Family Wealth,Social Capital And Rural Households’ Formal Credit Constraints

With the advancement of the rural revitalization strategy and the development of agricultural and rural modernization,the continuous improvement of my country’s rural financial market has made significant contributions to the development of rural economy and the improvement of farmers’ quality of life.However,due to the weak original foundation,insufficient later investment,and imperfect rural financial environment,the current rural financial market resources allocation efficiency is low,and the rural financial model and service system cannot meet the financial needs of farmers,and farmers still face credit constraints.The shortage of funds has an inhibitory effect on the development of agricultural economy and farmers’ income,and the problem of credit constraints has become a bottleneck restricting the development of agricultural and rural modernization.Therefore,this paper conducts relevant research based on the financing needs of farmers’ production and business credit and consumer credit,and clarifies the impact of household wealth as tangible collateral for farmers’ credit and social capital as intangible collateral on farmers’ formal credit constraints and its impact mechanism It has important practical significance for improving the financing efficiency of farmers and promoting the healthy development of the rural financial market.This paper uses the 2017 China Household Finance Survey(CHFS)data,based on1,735 production and business credit and 2,537 consumer credit farmer samples,taking farmer household wealth and social capital as the entry point,using Probit,Logit,IV-Probit and OLS The model analyzes various factors that affect farmers’ formal credit constraints and their influencing mechanisms.The research results show that: first,family wealth has a significant negative impact on the formal credit constraints of farmers’ production and business credit,and social capital is significantly positive on the formal credit constraints of farmers’ production and business credit;second,in farmers’ consumption credit,both household wealth and social capital significantly negatively affect the formal credit constraints of farmers’ consumer credit.After solving the endogenous problem,family wealth significantly reduces the probability of farmers being constrained by formal credit,and the impact of social capital on farmers’ formal credit constraints is also significantly negative;The impact of credit constraints is smaller than that of social capital,and in consumer credit,the impact of family wealth on farmers’ formal credit constraints is greater than that of social capital;fourth,at this stage,family wealth increases the investment of farmers’ social capital,thereby reducing farmers’ credit constraints.possibility.Finally,in view of the conclusions drawn from the research,in order to alleviate the formal credit constraints of farmers,this paper puts forward policy recommendations from three levels of farmers,financial institutions and government departments: increasing disposable income and improving household wealth;improving the quality of social capital and expanding social capital scale;explore a new guarantee system and improve the risk sharing mechanism;provide diversified and differentiated financial services and strengthen financial innovation;improve the rural credit system and optimize the rural credit environment;improve the relevant legal system and improve the financial market environment.