Relationship Between Credit Access and Agri-economy

With the rapid development of Chinese economy, the question of credit is becoming more and more important. Especially in China rural area, building a new socialist countryside needs the support of finance. While as we all known, the financial system in rural area is not effective enough to promote the productivity and the level of welfare of household.

The Role of Comprehensive Information Sharing in Credit Market： Theoretical Analysis and New Evidence from the European Union

This paper investigates the effect of the comprehensive information sharing on aggregate credit volume and the default ratio. Firstly, we utilize a three-stage game model developed by Dell＇Ariccia and Marquez （2006） to illustrate that the comprehensive information sharing would change the credit resource allocation and produce negative ＂composition effects＂ stated by Jappelli and Pagano （2005）. Then we use European Union （EU） data to test these theoretical implications. We find that when the information sharing system develops to a relatively high level, comprehensive information sharing improvements, for both the width and depth, are associated with the rise in macro credit access but also the aggregate default risk. We further find that the macro-consequences of variations in information sharing just differ in OECD and non-OECD group in EU countries. For OECD countries, the negative ＂composition effects＂ mainly arise from the increase in the width of information sharing while these effects are correlated with both the rise in depth and width indicators for non-OECD countries.

Enhancing Access to Bank Credit for Small-Scale Farmers in Kisumu and Kiambu Districts, Kenya Through Public-Private Partnership Initiative

In Kenya, small-scale fanning has immense potential in poverty reduction. The growth of farming activities requires sustainable access to affordable credit to boost and sustain production. This study is initiated to investigate factors influencing access to bank credit by small-scale farmers in Kisumu and Kiambu Districts, Kenya. It is necessitated by lack of a comprehensive study documenting the effectiveness of the partnership initiative in improving access to credit for small-scale farmers. The study seeks to address the following concerns： what factors influence access to bank credit by small-scale farmers under the initiative？ Are small-scale farmers in various parts of the country accessing bank credit equally？ Through which sources do farmers get to know about credit products provided through the initiative？ Primary data was collected from 144 farmers in Kiambu and 127 farmers in Kisumu, sampled using systematic random procedure. The cross-sectional survey design was applied to guide the research process. Quantitative analysis generated cross-tabulations with chi-square and binary logistic regression. The study found that out of 144 credit applicants in Kiambu about 56.3% were successful, while in Kisumu only 37.8% were successful. Access to bank credit was significantly associated with farmers＇ gender, education level, income level, farm size, and farming experience. Besides, women were 1.3 times less likely to access bank credit than men. In terms of regional variation, a Kiambu farmer was 2.7 times more likely to obtain bank credit than a Kisumu farmer. The initiative is an innovative approach for enhancing access to bank credit; however, its potential has not been fully exploited. The study recommends the need： to inform farmers about credit products to clear misconceptions and myths associated with bank credit; develop innovative financing packages for small-scale farmers that are also gender-sensitive; and to initiate a training program targeting farmers with appropriate information.

Commercial Credit and Corporate Productivity

As an important form of informal finance,commercial credit is widely used among enterprises.Does commercial credit promote the total factor productivity of enterprises?According to the theoretical literature and the reality,using the large sample data of Chinese industrial enterprises,the paper empirically tests the impact of commercial credit on the productivity of enterprises from three aspects:the provision and acquisition of commercial credit and the net commercial credit.The study finds that the provision of commercial credit reduces the productivity level of enterprises;the acquisition of commercial credit fails to promote productivity;while the net commercial credit as a short-term financial buffer for enterprises can alleviate the financing constraints,faced by enterprises,especially private enterprises,which help to increase their productivity levels.In addition,the study found that the higher the marketization process in the region,the more favorable the commercial credit is to the improvement of the production efficiency of private enterprises.