It has been commonly recognized that the cooperative finance organizations in China's rural areas have been playing an important role in spreading farm production risks, increasing farmers' income, as well as stimulating the overall rural economic growth. This paper attempted to identify the key factors which potentially contributed to the farmers' willingness to participate in the new-form of the rural cooperative finance organizations sponsored by the Chinese governments. In the process, a total of 442 farmer households as well as small-micro farming enterprises were sampled from the villages in Panjin municipality of Liaoning Province in China, where the new form of the rural cooperative finance organization(NFRCFO) experiment was under way. Those potential factors were classified into the four categories, including the characteristics of the famer households, the reputation of the rural finance cooperatives, transaction costs paid, as well as service quality. A discrete Logit model was used for parameter estimations. The results showed that most of the factors being considered exhibited statistically significant effects on the farmers' willingness to take part in NFRCFO, but with each presenting different levels of impacts. The causes and effects for those uncovered empirical results were fully discussed following by policy implication discussion.
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