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Research of Tancheng Rural Credit Cooperatives on the Effect of Income Growth of Farmers

Author: GuanQiBao
Tutor: QiaoYue
School: Shandong University
Course: Finance
Keywords: Tancheng county Rural Credit Cooperatives Income of farmers
CLC: F323.8;F224
Type: Master's thesis
Year: 2011
Downloads: 26
Quote: 0
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Abstract


In recent years, our country has paid more and more attention on agriculture, rural areas and farmers. In these three issues, how to improve the income of farmers is becoming more and more important. In order to improve the development of rural areas and reduce the burden on farmers, the state has adopted a series of preferential policies and increased efforts to support rural areas, such as abolished the agricultural tax and improved rural infrastructure and so on. The implementation of all these measures effectively promoted the development of rural areas and improved the income level of farmers. However, we should know there are still a lot of factors that constrain the economic development of rual areas, for example, the development of rural finance can not meet the need of farmers. These factors seriously hampered the improvement of income level of farmers.At present, finance in rural area is lagging behind. Because the anti-risk ability of agriculture production is weak, and farmers’ income level is low and farmers’s loan is usually very small, many financial institutions have gradually withdraw from the rural market, such as agricultural bank of China. Most of the current loans in rural areas is provided by rural credit cooperatives, so rural credit cooperatives is playing an important role in economic development of rural areas. However, loans provided by rural credit cooperatives can not meet the capital demand of farmers. The withdrawal of informal financial institutions provided the existing soil for rural informal finance. Because the interest rate of informal finance is usually very high and most are not in control of the country, so informal finance increases the burden on farmers and with considerable risks and could have some impact on financial order of our country. In order to better promote the income levels of farmers and meet the capital need of farmers, it needs to establish an orderly, reasonable and convenient rural financial system. Priority is to speed up the reform and improve the service of rural credit cooperatives and make rural credit cooperatives play a more important role in rural areas.Tancheng county is located in the junction of Shandong province and Jiangsu province, which dominated by agriculture, rich in wheat, corn and rice, ect. Tancheng is also the commodity production base and rack of lean pork production base in the country. Besides that, specialty agriculture is becoming more and more famous and ginkgo, chestnut and grass Sambo Langya renowned Chinese an foreign. Tancheng as one of the four major ginkgo production bases is named "world first ginkgo county" and "China Salix integra town". This paper is from a county perspective, combining the theory with the actual situation and analizing the effect on income level of farmers caused by Tancheng ruarl credit cooperatives, and improving the research on farmers’ income affect mechanism. This paper is divided into five parts, the first part is an introdution, mainly including the research background and significance, as well as research contents and methods. The second part is literature review, which is divided into two parts:foreign literature review and domestic literature review. The third part is analysis of the current situation of Tancheng rural credit cooperatives and farmers’ income. The fourth part is the empirical test, which is using empirical approach to analize the effect on farmers’ income caused by Tancheng rural credit cooperative. The last part is the policy recommendations. Combining the results of the fourth part and the actual situation of Tancheng county, this paper proposes the policy recommendation on how to promote the reform of Tancheng rural credit cooperatives and improve farmers’ income and the services of rural credit cooperatives.

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CLC: > Economic > Economic planning and management > Economic calculation, economic and mathematical methods > Economic and mathematical methods
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