IDEAS home Printed from https://ideas.repec.org/a/gam/jsusta/v10y2018i10p3577-d174140.html
   My bibliography  Save this article

The Dual Threshold Limit of Financing and Formal Credit Availability with Chinese Rural Households: An Investigation Based on a Large Scale Survey

Author

Listed:
  • Long Qin

    (School of Economics and Management, Beihang University, Beijing 100191, China)

  • Ruoen Ren

    (School of Economics and Management, Beihang University, Beijing 100191, China)

  • Qinghai Li

    (School of Economics, Nanjing University of Finance and Economics, Nanjing 210046, China)

Abstract

The literature on credit availability for rural households primarily focuses on the supply side, and largely ignores the demand side. This paper divided the credit process into three stages using large-scale household survey data. It also reviewed the credit process in other developing countries. A dual sample selection model was used to deal with the dual self-selection problem, which has been neglected in previous studies. This paper found that the main obstacle that farmers faced in obtaining financing was fear of applying for credit from formal financial institutions. In addition, there were significant differences in the determinants of different stages of the credit process of rural households.

Suggested Citation

  • Long Qin & Ruoen Ren & Qinghai Li, 2018. "The Dual Threshold Limit of Financing and Formal Credit Availability with Chinese Rural Households: An Investigation Based on a Large Scale Survey," Sustainability, MDPI, vol. 10(10), pages 1-18, October.
    • Handle: RePEc:gam:jsusta:v:10:y:2018:i:10:p:3577-:d:174140
    as

    Download full text from publisher

    File URL: https://www.mdpi.com/2071-1050/10/10/3577/pdf
    Download Restriction: no
    File URL: https://www.mdpi.com/2071-1050/10/10/3577/
    Download Restriction: no
    ---><---

    References listed on IDEAS

    as
    1. Kumar, Anjani & Mishra, Ashok K. & Saroj, Sunil & Joshi, P.K., 2017. "Institutional versus non-institutional credit to agricultural households in India: Evidence on impact from a national farmers’ survey," Economic Systems, Elsevier, vol. 41(3), pages 420-432.
    2. Florin P. Vadean & Matloob Piracha, 2009. "Circular Migration or Permanent Return: What Determines Different Forms of Migration?," Studies in Economics 0912, School of Economics, University of Kent.
    3. Mikkel Barslund & Finn Tarp, 2006. "Rural Credit in Vietnam," Discussion Papers 06-03, University of Copenhagen. Department of Economics.
    4. Li, Changsheng & Lin, Liqiong & Gan, Christopher E.C., 2016. "China credit constraints and rural households’ consumption expenditure," Finance Research Letters, Elsevier, vol. 19(C), pages 158-164.
    Full references (including those not matched with items on IDEAS)

    Citations

    Citations are extracted by the CitEc Project, subscribe to its RSS feed for this item.
    as


    Cited by:

    1. Jiaojiao Liu & Gangren Zhang & Jun Zhang & Chongguang Li, 2020. "Human Capital, Social Capital, and Farmers’ Credit Availability in China: Based on the Analysis of the Ordered Probit and PSM Models," Sustainability, MDPI, vol. 12(4), pages 1-18, February.

    Most related items

    These are the items that most often cite the same works as this one and are cited by the same works as this one.
    1. Almeida, Alexandre N. & Bravo-Ureta, Boris E., 2019. "Agricultural productivity, shadow wages and off-farm labor decisions in Nicaragua," Economic Systems, Elsevier, vol. 43(1), pages 99-110.
    2. Song, Quanyun & Li, Jie & Wu, Yu & Yin, Zhichao, 2020. "Accessibility of financial services and household consumption in China: Evidence from micro data," The North American Journal of Economics and Finance, Elsevier, vol. 53(C).
    3. Amelie F. Constant, 2020. "Time-Space Dynamics of Return and Circular Migration: Theories and Evidence," CESifo Working Paper Series 8053, CESifo.
    4. Sun, Xiaoqi & Liu, Xiaojia, 2020. "Decomposition analysis of debt’s impact on China’s energy consumption," Energy Policy, Elsevier, vol. 146(C).
    5. Borodak, Daniela & Piracha, Matloob, 2013. "Who Moves and For How Long: Determinants of Different Forms of Migration," IZA Discussion Papers 7388, Institute of Labor Economics (IZA).
    6. Amelie F. Constant & Olga Nottmeyer & Klaus F. Zimmermann, 2013. "The economics of circular migration," Chapters, in: Amelie F. Constant & Klaus F. Zimmermann (ed.), International Handbook on the Economics of Migration, chapter 3, pages 55-74, Edward Elgar Publishing.
    7. Klabunde, Anna, 2014. "Computational Economic Modeling of Migration," Ruhr Economic Papers 471, RWI - Leibniz-Institut für Wirtschaftsforschung, Ruhr-University Bochum, TU Dortmund University, University of Duisburg-Essen.
    8. Chakraborty, Pallabi & Mahanta, Amarjyoti, 2024. "The role of financial and physical assets as substitute or complementary to land as collateral in credit market: Evidence from Indian households," Economic Systems, Elsevier, vol. 48(2).
    9. Lee, Sang-Hyop & Sukrakarn, Nopparat & Choi, Jin-Young, 2011. "Repeat migration and remittances: Evidence from Thai migrant workers," Journal of Asian Economics, Elsevier, vol. 22(2), pages 142-151, April.
    10. Finn Tarp, 2018. "Vietnam: The dragon that rose from the ashes," WIDER Working Paper Series 126, World Institute for Development Economic Research (UNU-WIDER).
    11. Kundu, Amit & DAS, SANGITA, 2021. "Accessibility of Institutional Credit among the Agricultural Labour Households and its Impact on their Livelihood," MPRA Paper 112791, University Library of Munich, Germany, revised 03 Mar 2022.
    12. Mohammad Wais Azimy & Ghulam Dastgir Khan & Yuichiro Yoshida & Keisuke Kawata, 2020. "Measuring the Impacts of Saffron Production Promotion Measures on Farmers’ Policy Acceptance Probability: A Randomized Conjoint Field Experiment in Herat Province, Afghanistan," Sustainability, MDPI, vol. 12(10), pages 1-15, May.
    13. Sowmya Dhanaraj & Vidya Mahambare & Pragati, 2021. "Are India’s farm debt waivers a political tool that impacts government finances?," Working Papers 2021-211, Madras School of Economics,Chennai,India.
    14. Yong Bian & Xiqian Wang & Qin Zhang, 2023. "How Does China's Household Portfolio Selection Vary with Financial Inclusion?," Papers 2311.01206, arXiv.org.
    15. Birthal, Pratap S. & Hazrana, Jaweriah & Roy, Devesh & Satyasai, K. J. S, 2024. "Can Finance Mitigate Climate Risks in Agriculture? Farm-level Evidence from India," Policy Papers 344992, ICAR National Institute of Agricultural Economics and Policy Research (NIAP).
    16. Paramasivam Ramasamy & Umanath Malaiarasan, 2023. "Agricultural credit in India: determinants and effects," Indian Economic Review, Springer, vol. 58(1), pages 169-195, June.
    17. Mishra, Aswini Kumar & Bhardwaj, Vedant, 2022. "Financial access and household’s borrowing: Policy perspectives of an emerging economy," Journal of Policy Modeling, Elsevier, vol. 44(5), pages 981-999.
    18. Zhu, Jialiang & Liu, Yun & Fang, Ying, 2023. "A blessing in disguise—The effect of China’s Covid-19 health code system on older people’s mobile payment usage," Finance Research Letters, Elsevier, vol. 53(C).
    19. Wanglin Ma & Huanguang Qiu & Dil Bahadur Rahut, 2023. "Rural development in the digital age: Does information and communication technology adoption contribute to credit access and income growth in rural China?," Review of Development Economics, Wiley Blackwell, vol. 27(3), pages 1421-1444, August.
    20. Tocco, Barbara & Bailey, Alastair & Davidova, Sophia, 2013. "The Reallocation of Agricultural Labour across Sectors: An Empirical Strategy for Micro Data," Working papers 155703, Factor Markets, Centre for European Policy Studies.

    Corrections

    All material on this site has been provided by the respective publishers and authors. You can help correct errors and omissions. When requesting a correction, please mention this item's handle: RePEc:gam:jsusta:v:10:y:2018:i:10:p:3577-:d:174140. See general information about how to correct material in RePEc.

    If you have authored this item and are not yet registered with RePEc, we encourage you to do it here. This allows to link your profile to this item. It also allows you to accept potential citations to this item that we are uncertain about.

    If CitEc recognized a bibliographic reference but did not link an item in RePEc to it, you can help with this form .

    If you know of missing items citing this one, you can help us creating those links by adding the relevant references in the same way as above, for each refering item. If you are a registered author of this item, you may also want to check the "citations" tab in your RePEc Author Service profile, as there may be some citations waiting for confirmation.

    For technical questions regarding this item, or to correct its authors, title, abstract, bibliographic or download information, contact: MDPI Indexing Manager (email available below). General contact details of provider: https://www.mdpi.com .

    Please note that corrections may take a couple of weeks to filter through the various RePEc services.

    IDEAS is a RePEc service. RePEc uses bibliographic data supplied by the respective publishers.