IDEAS home Printed from https://ideas.repec.org/p/unu/wpaper/rp2008-52.html
   My bibliography  Save this paper

Vulnerability, Trust and Microcredit: The Case of China's Rural Poor

Author

Listed:
  • Calum G. Turvey
  • Rong Kong

Abstract

This paper investigates the economic conditions of rural households in China. Historical survey data indicate that over 80 per cent of rural households earn less than 4,500 yuan in net disposable income each year, that for the vast majority of rural households disposable income is insufficient to meet food consumption needs, and that in terms of economic growth rural households are receiving an ever decreasing percentage of China's growing economy with rural household incomes being only 31 per cent of urban household income in 2004.

Suggested Citation

  • Calum G. Turvey & Rong Kong, 2008. "Vulnerability, Trust and Microcredit: The Case of China's Rural Poor," WIDER Working Paper Series RP2008-52, World Institute for Development Economic Research (UNU-WIDER).
    • Handle: RePEc:unu:wpaper:rp2008-52
    as

    Download full text from publisher

    File URL: https://www.wider.unu.edu/sites/default/files/rp2008-52.pdf
    Download Restriction: no
    ---><---

    References listed on IDEAS

    as
    1. James Jr., Harvey S., 2002. "The trust paradox: a survey of economic inquiries into the nature of trust and trustworthiness," Journal of Economic Behavior & Organization, Elsevier, vol. 47(3), pages 291-307, March.
    2. Manfred Zeller, 2006. "A comparative review of major types of rural microfinance institutions in developing countries," Agricultural Finance Review, Emerald Group Publishing, vol. 66(2), pages 195-213, September.
    3. Kandel, Eugene & Lazear, Edward P, 1992. "Peer Pressure and Partnerships," Journal of Political Economy, University of Chicago Press, vol. 100(4), pages 801-817, August.
    4. Valentina M. Hartarska & Martin Holtmann, 2006. "An overview of recent developments in the microfinance literature," Agricultural Finance Review, Emerald Group Publishing, vol. 66(2), pages 147-165, September.
    5. Rabin, Matthew, 1993. "Incorporating Fairness into Game Theory and Economics," American Economic Review, American Economic Association, vol. 83(5), pages 1281-1302, December.
    6. Sjoerd Beugelsdijk & Henri L.F. de Groot & Anton B.T.M. van Schaik, 2004. "Trust and economic growth: a robustness analysis," Oxford Economic Papers, Oxford University Press, vol. 56(1), pages 118-134, January.
    7. Harvey James, 2002. "The Trust Paradox: A Survey of Economic Inquiries Into the Nature of Trust and Trustworthiness," Microeconomics 0202001, University Library of Munich, Germany.
    8. Stiglitz, Joseph E & Weiss, Andrew, 1981. "Credit Rationing in Markets with Imperfect Information," American Economic Review, American Economic Association, vol. 71(3), pages 393-410, June.
    9. Richard L. Meyer & Geetha Nagarajan, 2006. "Microfinance in developing countries: accomplishments, debates, and future directions," Agricultural Finance Review, Emerald Group Publishing, vol. 66(2), pages 167-193, September.
    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. Turvey, Calum G. & Kong, Rong, 2010. "Informal lending amongst friends and relatives: Can microcredit compete in rural China?," China Economic Review, Elsevier, vol. 21(4), pages 544-556, December.
    2. Al-Jarhi, Mabid, 2010. "Reviving the Ethics of Islamic Finance," MPRA Paper 66732, University Library of Munich, Germany, revised 2011.

    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. Uwe Jirjahn & Vanessa Lange, 2015. "Reciprocity and Workers’ Tastes for Representation," Journal of Labor Research, Springer, vol. 36(2), pages 188-209, June.
    2. Guido Merzoni & Federico Trombetta, 2012. "Foundations of trust, interpersonal relationships and communities," Rivista Internazionale di Scienze Sociali, Vita e Pensiero, Pubblicazioni dell'Universita' Cattolica del Sacro Cuore, vol. 120(3), pages 295-312.
    3. Kanagaretnam, Kiridaran & Mestelman, Stuart & Nainar, Khalid & Shehata, Mohamed, 2009. "The impact of social value orientation and risk attitudes on trust and reciprocity," Journal of Economic Psychology, Elsevier, vol. 30(3), pages 368-380, June.
    4. Güth, Werner & Mugera, Harriet & Musau, Andrew & Ploner, Matteo, 2014. "Deterministic versus probabilistic consequences of trust and trustworthiness: An experimental investigation," Journal of Economic Psychology, Elsevier, vol. 42(C), pages 28-40.
    5. Marie-Laure Cabon-Dhersin & Shyama V. Ramani, 2007. "Opportunism, Trust and Cooperation," Rationality and Society, , vol. 19(2), pages 203-228, May.
    6. Kvaløy, Ola & Olsen, Trond E., 2008. "Relative performance evaluation, agent hold-up and firm organization," Journal of the Japanese and International Economies, Elsevier, vol. 22(2), pages 229-241, June.
    7. Fali Huang, 2003. "Social Trust, Cooperation, and Human Capital," Working Papers 01-2004, Singapore Management University, School of Economics, revised Jan 2004.
    8. Goeschl, Timo & Jarke, Johannes, 2017. "Trust, but verify? Monitoring, inspection costs, and opportunism under limited observability," Journal of Economic Behavior & Organization, Elsevier, vol. 142(C), pages 320-330.
    9. Matteo Ploner, 2007. "Personal Autonomy in Trust-Based Interactions. An Experimental Analysis," CEEL Working Papers 0701, Cognitive and Experimental Economics Laboratory, Department of Economics, University of Trento, Italia.
    10. Ola Kvaløy & Trond E. Olsen, 2006. "Team Incentives in Relational Employment Contracts," Journal of Labor Economics, University of Chicago Press, vol. 24(1), pages 139-170, January.
    11. Helena Lopes, 2008. "From Self‐Interest Motives to Justice Motives: The Challenges of Some Experimental Results," American Journal of Economics and Sociology, Wiley Blackwell, vol. 67(2), pages 287-313, April.
    12. Fali Huang, 2007. "Building Social Trust: A Human-Capital Approach," Journal of Institutional and Theoretical Economics (JITE), Mohr Siebeck, Tübingen, vol. 163(4), pages 552-573, December.
    13. Turvey, Calum G. & Kong, Rong, 2010. "Informal lending amongst friends and relatives: Can microcredit compete in rural China?," China Economic Review, Elsevier, vol. 21(4), pages 544-556, December.
    14. Colombo, Ferdinando & Merzoni, Guido, 2006. "In praise of rigidity: The bright side of long-term contracts in repeated trust games," Journal of Economic Behavior & Organization, Elsevier, vol. 59(3), pages 349-373, March.
    15. Arne Wiig, 2004. "Risk and disintermediation in tourism," CMI Working Papers WP 2004: 6, CMI (Chr. Michelsen Institute), Bergen, Norway.
    16. Bohdan Kukharskyy & Michael Pflüger, 2011. "Relational Contracts and the Economic Well-Being of Nations," Working Papers 095, Bavarian Graduate Program in Economics (BGPE).
    17. Kelly, Liam D. & Deaton, B. James, 2020. "Endogenous Institutional Change on First Nations Reserves: Selecting into the First Nations Land Management Act," 2020 Annual Meeting, July 26-28, Kansas City, Missouri 304294, Agricultural and Applied Economics Association.
    18. Erik O. Kimbrough & Vernon L. Smith & Bart J. Wilson, 2008. "Historical Property Rights, Sociality, and the Emergence of Impersonal Exchange in Long-Distance Trade," American Economic Review, American Economic Association, vol. 98(3), pages 1009-1039, June.
    19. Dirk Sliwka, 2007. "Trust as a Signal of a Social Norm and the Hidden Costs of Incentive Schemes," American Economic Review, American Economic Association, vol. 97(3), pages 999-1012, June.
    20. Jeffery Carpenter & Samuel Bowles & Herbert Gintis, 2006. "Mutual Monitoring in Teams: Theory and Experimental Evidence on the Importance of Reciprocity," Middlebury College Working Paper Series 0608, Middlebury College, Department of Economics.

    More about this item

    Keywords

    Credit; Economic equilibrium; Food security; Microfinance; Rural development;
    All these keywords.

    NEP fields

    This paper has been announced in the following NEP Reports:

    Statistics

    Access and download statistics

    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:unu:wpaper:rp2008-52. 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: Siméon Rapin (email available below). General contact details of provider: https://edirc.repec.org/data/widerfi.html .

    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.