TITLE:
A Study on the Effectiveness of Financial Supports to the Entrepreneurship of Farmers—Based on the Data from 1978 to 2011 in China
AUTHORS:
Xinzhi Liu, Lu Li, Chunyan Du, Yusong Liu
KEYWORDS:
Entrepreneurship of Farmers, Financial Supports, Panel Data, Variable Coefficient Model
JOURNAL NAME:
American Journal of Industrial and Business Management,
Vol.4 No.9,
September
25,
2014
ABSTRACT: We use a fixed effect variable coefficient
model to analyse effectiveness of financial supports to the entrepreneurship of
farmers, based on the data from 1978 to 2011 in China. Results show that due to
the significant differences in regions among farmers’ entrepreneurship, the
demand of rural financial supports for the peasants’ entrepreneurship is
distinct; the different rural financial supports for farmers’ entrepreneurial
also exist. The financial supports of developed eastern provinces to the
entrepreneurship of farmers are effective, while that of the underdeveloped
provinces in middle and western China is opposite. At last, focusing on market
failure that farmers in poor areas encountered, like the rural imperfect
financial system, the credit guarantee system, the asymmetric information and
high transaction cost, some suggestions are given in this paper, such as the
encouragement of the micro-finance for farmers’ entrepreneurship, standardizing
and guiding the informal finance for farmers’ entrepreneurship and the
establishment of risk fund for farmers’ entrepreneurship.