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Research on the Impact of Credit Support on the Income Increase of Family Farms in China: Based on Hunan Province

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  • Zhonghua Luo
  • Mengliang Zhou
  • Song Jiang

Abstract

Family farms are an important part of rural revitalization in China. Strengthening credit support for family farms is of great significance for increasing family farm income. This paper takes 1895 demonstrative family farms in Hunan Province as an example and proposes research hypotheses based on the theoretical analysis of the income growth effect of family farm credit. Based on the Cobb–Douglas theory, the Tobit model is used to make an empirical analysis of the income-increasing effect of family farms. And, we can add explanatory variables and QTE quantile effect model for testing. The results show that strengthening family farm credit support is conducive to increasing family farm income, and the coef. is 0.428. Family farm credit support is positively correlated with its total operating income. The more credit support for a family farm receives, the higher its total operating income. When the credit support of a family farm reaches a certain scale of 300,000 RMB, its income-increasing effect begins to diminish gradually.

Suggested Citation

  • Zhonghua Luo & Mengliang Zhou & Song Jiang, 2022. "Research on the Impact of Credit Support on the Income Increase of Family Farms in China: Based on Hunan Province," Mathematical Problems in Engineering, Hindawi, vol. 2022, pages 1-8, May.
    • Handle: RePEc:hin:jnlmpe:8483031
    DOI: 10.1155/2022/8483031
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