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The Research about Internal Mechanism of Rural Private Credit under the Perspective of Social Capital Theory

Author: WangYanLi
Tutor: DongCaiSheng
School: Jilin University
Course: Sociology
Keywords: Private credit in rural areas Social Capital Trust Social networks
CLC: F832.4
Type: Master's thesis
Year: 2011
Downloads: 291
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Abstract


Associated with the development of China's socialist market economy , the rural economy has gradually flourished , followed by the financial markets in rural areas is increasing demand for capital , but because of the policy of containment to take the capital by the formal financial institutions in the rural financial market , so it can not meet the demand of the main financial capital , and private credit as a quick and effective means of additional capital in rural economic and social development . In this paper, based on the R City , Shandong Province, a rural community , for example , rural folk credit run development mechanism to explore the validity and necessity of the rural folk credit subsisting study part of R in a rural community realistic financial subject non- structured interviews , from a sociological perspective within the framework of the theory of social capital , we have come to this conclusion: the private credit system in rural areas is a strong relationship between the network system mode of operation , stressed the lending practices of the members of the network to establish in the pursuit of rational value the intrinsic system type on the basis of social trust , at the same time the special doctrine trust to build a strong relationship between network structure conditionality exists within the group members and the need for its existence , able to run the development of private credit in this internal mechanism come to establish strong network of relationships within the rural folk credit financial order and rationality , here we want to point out that our study does not include illegal underground banks and other means of financing , our main departure from the reality of the Y Village destruction, as effective additional means of rural financial markets continue to develop possibility and necessity follow the conditions of the development of their own internal mechanism .

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CLC: > Economic > Fiscal, monetary > Finance, banking > China's financial,banking > Credit
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