Rural Finance Research Articles

Locking crops to unlock investment: Experimental evidence on warrantage in Burkina Faso

Warrantage is an innovative model of rural finance with the potential to overcome credit, crop storage, and behavioral constraints through a localized inventory credit system. Using a randomized controlled trial varying household level access to warrantage, we measure its impacts among households interested in participating. Among treated households, take-up of storage is high, while credit take-up is moderate. Treated households primarily store grains sell their production over an extended period, at a time when prices are higher resulting in higher sales revenue. Increased incomes are spent on long-term investments, including education, livestock, and agricultural inputs for the subsequent year.

How to Prevent and Defuse Rural Financial Risks

How to Prevent and Defuse Rural Financial Risks

Application of Three-Stage DEA Model Combined with BP Neural Network in Microfinancial Efficiency Evaluation.

The research performed here intends to explore the future development model of new rural financial institutions and determine the financial efficiency goals, thereby providing a huge stage for the development of new rural financial institutions. It applies data envelopment analysis (DEA) to assess financial efficiency to make up for the research gap. First, the relevant theories of rural finance are discussed. Then, some indicators are selected to build an evaluation system. In addition, the DEA method is used to evaluate the rural financial efficiency in Hebei Province by listing the input indexes and output indexes. After training, the backpropagation neural network (BPNN) model is designed and simulated to obtain the evaluation results. The research results show that before 2015, the comprehensive efficiency of Xingtai, Hengshui, Shijiazhuang, and Langfang showed a downward trend. After 2015, the comprehensive efficiency of all cities in Hebei Province tended to be stable, generally stable at about 0.95. It suggests that rural finance in Hebei Province has developed stably in recent years, and the overall efficiency of rural finance has been improved to a certain extent. The simulation results of BPNN demonstrate that the operation efficiency evaluation result of the poverty alleviation development model in the financial support industry is 0.6995, in the interval (0.6, 0.8). In addition, the model operation efficiency is better, indicating that the poverty alleviation development model of the financial support industry has achieved good results and promoted the development of poor rural areas. The research content can provide reference and inspiration for the continuous promotion of rural finance and the formulation and implementation of financial institution reform policies.

Optimization Analysis of Rural Finance Based on Supply-Side Structural Reform

As the country has been placing greater emphasis on agricultural development, rural finance based on supply-side structural reform has achieved tremendous growth. However, investigations have found that the rural financial market still has problems in its service modes, organizational systems, product innovation, and risk evaluation, thus requiring urgent attention. Therefore, this study analyzes and expounds on these problems from the aforementioned four aspects and proposes the following solutions: encourage the creation of agricultural service institutions, establish and improve the rural financial organization system, vigorously develop new rustic financial products, and strengthen the risk supervision and management of financial markets. Only in this way can the agricultural supply-side structural reform and the innovative development of rural finance be realized.

Research on the Development Dilemma and Countermeasures Faced by Rural Digital Inclusive Finance

Due to the influence of the complexity and diversification of financial needs in rural areas, traditional financial services have exposed many problems, and it is difficult to fully meet the personal credit needs of farmers. Under this circumstance, rural digital financial inclusion has achieved rapid development. Compared with the traditional inclusive finance model, digital inclusive finance has wider coverage and higher service efficiency, helping to promote the development of the rural economy. At present, the development of rural digital inclusive finance still faces many difficulties, which need to be solved and optimized urgently. To this end, this paper discusses the development difficulties and countermeasures faced by rural digital inclusive finance for reference.

Factors Influencing the Coupling of the Development of Rural Urbanization and Rural Finance: Evidence from Rural China

This study empirically analyzes factors influencing the coupling and coordinated development of rural urbanization and rural finance. For this purpose, the study employs the coupling degree model and develops a panel quantile model to estimate the coupling degree and coupling coordination degree of rural urbanization and rural finance. Accordingly, the study presents panel data comprising 31 provinces, municipalities, and autonomous regions in China from 2010 to 2019. The empirical results reveal that the coupling degree of rural urbanization and rural finance is relatively low in most study areas. This result suggests that rural urbanization and rural financial development in most provinces in China have not exhibited coordinated development. Further, the results reveal that urban population density negatively affects the coupling and coordination degree of rural urbanization and rural finance. Moreover, the effects of urban population density are more significant in areas with a low coupling coordination degree compared with those with a higher coupling coordination degree. An increase in the quantile gradually decreases the effect of the proportion of educational expenditure to GDP on the degree of rural urbanization and rural financial coupling coordination. However, the effect of financial development efficiency increases accordingly. The per capita GDP, per capita fiscal expenditure, and per capita built-up area significantly affect all the quantiles, indicating a positive correlation. This correlation can promote the coupling and coordinated development of rural urbanization and rural finance. In areas with a low coupling coordination degree, the financial development scale significantly positively affects the coupling coordination degree of rural urbanization and rural finance. In areas with a high coupling coordination degree, the financial development scale significantly negatively correlates with the coupling coordination degree. In addition, a positive correlation exists between the financial development structure and the coupling coordination degree of rural urbanization and rural finance.

AGRICULTURAL OUTPUT EFFECT OF RURAL FINANCE: AN EXTENDED REGRESSION APPROACH

Agricultural output growth is an everlasting realistic problem in human society. Rural finance aims to relieve the financing constraint and pressure on the rural society with capital scarcity through credit aid and support agricultural output growth. However, credit funds cannot be adequately input into agricultural production and management, which adversely impacts agricultural output. To accurately investigate the agricultural output effect of rural finance, using the 2015 China Household Finance Survey’s large-sample micro-survey data, an extended regression model (ERM) was established that could effectively eliminate the endogeneity problem. Then, the agricultural output effect of rural finance was empirically estimated. Subsequently, the robustness of empirical results was tested using the propensity score matching (PSM) method and the Kernel density map. Agricultural technical guidance was introduced to explore its regulating effect on the relationship between rural finance and agricultural output. Furthermore, the robustness test was conducted for different groups, such as the eastern region, the western region, and the central region, to investigate the regional differences in the agricultural output effect of rural finance. The estimation results of ERM indicate that rural finance exerts a significantly positive influence on the agricultural output, and a large estimated coefficient manifests the considerable agricultural output effect of rural finance. The estimation results of the PSM method show that rural finance significantly increases the agricultural output of all peasant household samples averagely by 11,100 CNY. Agricultural technical guidance has a significantly positive regulating effect on the agricultural output effect of rural finance. According to the regional heterogeneity analysis, rural finance is significantly promoted in central and western regions, but it presents an insignificant crowding-out effect in the eastern region. Conclusions in this study can provide pertinent enlightenment for strengthening the productive functions of rural finance and lay a theoretical foundation for facilitating its healthy development.

ROLE OF FINTECH AND AI IN THE ADVANCEMENT OF INDIAN RURAL AND URBAN FINANCIAL SYSTEMS

Fintech is an abbreviation for “Financial Technology”. It imparts alternate solutions for Banking and non-Banking financial services. Fintech is rapid growing concept in the financial sector. The economic growth and welfare of any nation depends upon the peoples’ reachability towards their financial product and services offered by them. The study of this paper explains the evolution of the fintech industries and current use of financial technology in the Indian Rural Financial Systems and Services. The term fintech provides digital transaction more secure and easily understandable for the user. Fintech Services reduce the operational cost and it is very user friendly. Fintech services in Indian scenario are the fastest growing in the world and are working as a game changer for the habits and behavior of the Indian financial systems.

Rural Financial Decision Support System Based on Database and Genetic Algorithm

With the development of society and economy, the rural financial institution system mainly includes cooperatives and political and commercial rural financial institutions, and they are supplemented by agricultural insurance, guarantee, securities and other nonfinancial organizations to improve their own functions. Rural credit cooperatives have higher investment and operation risks than other financial institutions. New-type rural financial institutions are more sensitive to the market environment, asset quality and profitability, and risk-taking ability. Internal and external risks continue to accumulate, and their potential is low. These risks pose serious obstacles to the development and growth of financial institutions such as rural banks and microfinance companies, and pose major challenges to the security and stability of rural areas and agriculture. Using database and genetic algorithm to study rural credit risk, profitability, and liquidity, in order to track the impact of each explanatory variable in the system on the explained variable, the impulse response function is used to analyze the impact of nonperforming loan ratio on asset profitability. The data are all close to 0, indicating that the influence between the two is more obvious. The intelligent decision-making system support system evaluates the market risk, credit risk, liquidity risk, and risk management and risk acceptance of rural financial institutions and explores effective countermeasures for their sustainable development.

Social Isolation and Safety Issues among Rural Older Adults Living Alone: Perspectives of Meals on Wheels Programs

ABSTRACT Ensuring the safety and social well-being of rural populations, especially rural older adults living alone with complex medical conditions, is challenging, given large, sparsely populated communities and limited resources. Using qualitative data from surveys with 42 rural Meals on Wheels programs from across the U.S., we highlight particular challenges to meeting the social and safety needs of rural older adults living alone. Respondents described challenges, opportunities, and successes in meeting the needs of their clients. We describe these under four domains: main challenges, what can be done to address social isolation and loneliness, safety issues, improving safety, and current successes. We also identify cross-cutting themes related to programs’ rural environment (long distances, inclement weather), infrastructure (housing quality, access to broadband Internet and technological connectivity, road conditions), funding and resource availability, and service provision (availability of health care and partner organizations.) We describe each of these in more detail and also share policy recommendations for improving health and safety of older adults living alone in rural areas, including funding nutrition programs as a health benefit and addressing aging, poor-quality housing stock.

Summary of Rural Credit and Rural Residents' Consumption

Rural finance can not only provide credit services for agricultural production, but also increase the rural residents circulation of funds, stimulate rural residents to invest and consumption, the total consumption of this group can effectively drive China's economic growth, and the main form of rural finance is rural credit. China's economy has entered the new normal development stage, and the economic construction has shifted from "quantity" to "quality", and China's rural residents account for a large proportion of the consumer groups, and the consumption level of rural residents is related to the overall consumption level of China. Therefore, the credit business in rural finance should be valued, and this paper tries to explore the relationship between rural credit and rural residents' consumption.

The Data Analytics of Finance Impact on the Rural Development Combining Financial Constraint and Economic Growth Theory.

In order to solve the predicament of rural economic development, China's rural areas have spontaneously formed a rural financial system with rural characteristics. With the deepening reform of rural finance, Rural Commercial Bank was restructured on the basis of rural credit cooperatives in the past. It can be said that Rural Commercial Bank is a rural financial institution born in rural areas. Therefore, the development of the local rural commercial bank and the development of the local rural economy have been integrated, and the core force in rural finance is the Rural Commercial Bank. It is precisely because of the core position of China's rural commercial banks in rural, when Chinese scholars conduct research on rural finance, they often choose rural commercial banks as the research object. Based on this, when the article studies the impact of rural finance on the rural economy, it also chooses rural commercial banks as the research object. Finance that the rural commercial banks are used as the starting point to carry out the research work on their local rural finance. This article takes D County Rural Commercial Bank as an example to introduce and analyze the development status and development process of D county's rural finance. Using the method of empirical research, this paper studies the impact of the development of agricultural-related business of rural commercial banks on the rural economy. In addition, according to the empirical research results, a set of financial innovation countermeasures to promote rural economic development is proposed. Through the research on the influence of rural financial institutions in D county on the rural economy, it can be seen that providing new directions and new methods for the development of China's rural economy from the perspective of finance. It provides a reference for promoting the stable and effective development of the domestic rural economy. The survey shows that rural deposits have maintained a rapid upward trend. The total amount increased rapidly from 2.219 billion yuan in 2012 to 6.039 billion yuan in 2018, with an average annual increase of 637 million yuan.

Remittances and the reconfiguration of rural finance in Nepal (1900–1960)

Remittances have been a crucial component in the lives of Nepali people since the beginning of the 20th century. Despite their importance, remittances only gained the attention of scholars and policymakers towards the end of the century. More recently, remittances have become linked to the global financial inclusion agenda in what has been termed the ‘financialisation of remittances’. This article proposes a temporal and spatial shift to explore the historical antecedents of the financialisation of remittances (1900–1960) and beyond the Global North to focus on the context of rural Nepal. I investigate the role of remittances in the reconfiguration of rural finance and social hierarchies. I propose the concept of ‘debt-reign’ as a political formation that allows to analyse the links between statecraft technologies, debt and caste relations, and remittances. Drawing on document analysis, expert interviews and a focus group discussion, the article shows the transformative power of remittances to bring about: the (re)negotiation of debt relations; an emancipation from debt relations; and the reconfiguration of social hierarchies. Together, these dynamics contribute to a reconfiguration of social power, challenging the domination of certain castes and rural elites and re-stratifying financial and social hierarchies. The analysis also highlights the colonial legacies of remittances that prepared the ground to introduce formal financial infrastructure in rural areas which is fundamental to contemporary financialisation.

The Impact of Financial Development on Agricultural Enterprises in Central China Based on Vector Autoregressive Model

China is a large developing country, and there is no doubt that it is a large developing agricultural country. Agriculture has played a vital role in the development of the national economy since ancient times, and it serves as the foundation of China’s national economy. As agricultural modernization is the fundamental way of agricultural development, its source of funds must come from rural finance. The financial support of rural finance for agricultural modernization is the material basis and prerequisite for ensuring the healthy and rapid development of agricultural modernization. If there is no financial support from rural finance, the process of agricultural modernization will be hindered, and it will not benefit our country’s socialist modernization. Although our country’s rural financial system has been constantly changing and improving, our country’s current financial system still has many shortcomings and defects. In the process of supporting agriculture, rural finance has insufficient capital supply, which has become a “bottleneck” in the development of agricultural modernization, and to a certain extent has severely restricted the development of agricultural modernization. On the basis of existing literature research, this article systematically studies the influence of rural financial market structure on the development of agricultural enterprises in central China. The content includes agricultural total factor productivity and agricultural emission reduction. When analyzing the impact of rural financial market structure on agricultural development, this article also pays attention to its specific impact on agricultural development under the conditions of different types of enterprises.

Study on Repayment Behavior of Beneficiary Farmers among Kisan Credit Card Scheme in Dewas District of Madhya Pradesh

India lives in villages. The majority of our country’s population depends upon agriculture. Hence, there is a great need for inclusion of rural people in the financial framework. When it is considered rural credit system to facilitate various financial needs of the rural folks or farmers, it has many dimensions. Over the years, NABARD has taken initiatives to supply adequate credit to farmers, which has made the rural finance system more efficient. Kisan credit card users were determined on the basis of the time to which they repaid their loan and categorized into three groups i.e. those who repaid their loan in schedule date termed as ‘regulars’. Those who repaid their loan after scheduled date of repayment termed as ‘irregulars’. Those who failed to repay their loan on schedule date termed as ‘defaulter’. Finding reported that repayment behaviour of KCC holders the result showed that the majority (46.67 per cent) of the respondents were found to repay their credit on timely, 29.17 per cent respondents were found who not capable to repay their credit on time schedule and 24.16 per cent respondents were found who had defaulter.

BOOK REVIEW: The Last Mile - India's Experiment with Rural Finance by R.N.Dash

BOOK REVIEW: The Last Mile - India's Experiment with Rural Finance by R.N.Dash

Impacts of the use of biological pest control on the technical efficiency of the Brazilian agricultural sector.

This paper aimed to assess the impact of the intensive use of biological control on the technical efficiency of the Brazilian agricultural sector. The study also considered the influence of factors such as technical assistance, rural financing, and membership in cooperatives or class entities on efficiency measures. It was estimated stochastic production frontiers for regions intensively using and not using biological control, considering potential selection bias. Results demonstrate that areas with intensive use of biological pest management have a 0.863 technical efficiency score, while this score is 0.823 for nonintensive areas. This means that the intensive regions would be closer to their efficiency frontiers. Additionally, technical assistance and membership in cooperative or class entities increase efficiency by 6 and 2.5%, respectively. It can be concluded that the intensive adoption of biological control can raise the productive performance of the Brazilian agricultural sector. Therefore, it must be highlighted the importance of formulating joint policies (e.g., credit+rural extension) for the adoption of biological control to be a feasible option to promote the sustainable development of the Brazilian agricultural sector.

Rural Financial Efficiency, Agricultural Technological Progress and Agricultural Carbon Emissions: Evidence from China

Based on the 30-province panel data in China during 2005-2018, this paper uses the DEA-SBM model and DEA-Malmquist model to measure rural financial efficiency and agricultural technological progress respectively and then uses the mediating effect model to analyze the linear influence. The results show that rural financial efficiency and agricultural technological progress both can inhibit agricultural carbon emissions, while agricultural technological progress plays a mediating role when rural financial efficiency influences agricultural carbon emissions. What’s more, this paper uses the threshold effect model to analyze the non-linear influence. The findings reveal that when rural financial efficiency improves, the effects of rural financial efficiency and agricultural technology advances on agricultural carbon emissions shift from promoter to inhibitor.

Intelligent Prediction and Rural Financial Development Based on Abnormal Detection of Sensor Data.

Wireless sensor network is a multisensor wireless network system, which consists of multiple sensors and is configured independently. Because the network generates a large amount of data, the frequency, performance, and computing power of sensor nodes are limited, and they are particularly vulnerable to harsh environments and malicious attackers. This leads to the occurrence of malicious nodes, emergencies, and abnormal data in the sensor network system. Failures can also have a significant impact on sensor network services. The two main functions of wireless sensor network security are abnormal node detection and data anomaly detection. These two directions are mutually independent and complementary. Therefore, under the promotion of the rural revitalization strategy and the precision poverty alleviation strategy, China has increased its agricultural efforts. At this stage, all localities focus on the construction of rural financial systems to ensure that scattered farmers and rural small and micro-enterprises receive comprehensive financial services. The establishment of a rural financial system based on “intelligent forecasting” can improve financial development theories and build new ideas for rural financial development. And, the balance between realization and profitability, and then, through the use of Internet technology to make traditional financial institutions more effective in providing financial services, new online financial platforms can use them to make up for the existing shortcomings of traditional financial institutions as much as possible. In this article, through the research on the intelligent prediction of sensor data anomaly detection, it is applied to the development of rural finance and promotes the development of rural finance.

Research on the Trust Mechanism of Individual Consumers in Rural Financial Markets Based on the Dynamic CGE Model

In order to obtain the complete equilibrium state of rural financial market and ensure the stable development of rural financial consumer market, this paper introduces CGE model and analyzes the dynamic trust mechanism of individual consumers in rural financial market. In this paper, the single variable evolutionary fuzzy clustering algorithm is used to analyze the orthogonal eigenvector solutions of individual consumers; the big data of individual consumers under the mode of perceived trust is automatically clustered, so as to obtain the fuzzy analogy function of individual consumers in the rural financial market; and finally the prediction value of consumer trust is obtained. The results show that trust, customer satisfaction, and service quality are positively correlated. Under the same sample expectation constraints, the dynamic CGE model is more robust, and the individual consumer trust mechanism of rural financial market in the study area has higher advantages.