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Are rural cadre households more likely to obtain formal credit?

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  • Zhenqi Fu
  • Yunqing Tao

Abstract

This paper utilizes data from the China Land Economic Survey (CLES) to investigate the impact of rural cadre households on formal credit in Jiangsu Province, China. The findings demonstrate that rural cadre households are more likely to obtain formal credit compared to non-cadre households. This result is robust and supported by various mechanisms, including rural cadre households’ superior financial knowledge, family assets, and social capital. The study highlights the significance of political status as a crucial factor influencing households’ access to credit, thereby adding to the existing literature on household finance.

Suggested Citation

  • Zhenqi Fu & Yunqing Tao, 2024. "Are rural cadre households more likely to obtain formal credit?," Applied Economics Letters, Taylor & Francis Journals, vol. 31(16), pages 1519-1527, September.
  • Handle: RePEc:taf:apeclt:v:31:y:2024:i:16:p:1519-1527
    DOI: 10.1080/13504851.2023.2203443
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