Financial support is a crucial part of China's poverty alleviation effort.Thus,it is vital to understand how formal credit impacts income growth in rural households.In 2012,2015,and 2018,a survey was conducted to ...Financial support is a crucial part of China's poverty alleviation effort.Thus,it is vital to understand how formal credit impacts income growth in rural households.In 2012,2015,and 2018,a survey was conducted to obtain a panel dataset of 592 rural households from 6 poverty-stricken counties in western China,including counties in Guizhou,Yunnan,and Shaanxi provinces.We use the data to examine the effect of formal credit on rural household income and the mechanism that underlies this effect.We find that formal credit can significantly increase rural households'income in deprived areas in western China.Furthermore,formal credit promotes the reallocation of household labor from the agricultural sector to the non-agricultural sector and changes rural households'decisions about investment-consumption behavior.These are the drivers of changes in the amount and structure of household income.Further analyses show that formal credit may widen income inequality among rural households in western China's deprived areas.The individual characteristics of rural households,such as different levels of material capital,human capital,and social capital,bring about differences in the effects of formal credit on income growth.This study emphasizes that the implementation of formal credit is an essential strategy for poverty alleviation in underdeveloped areas,but policymakers should not excessively interfere with the financial market.展开更多
Since rural microfinance is a credit which grants loans without collateral and guarantees to farmers,it is considerably important to evaluate and control the household credit risk.Through establishing the evaluation i...Since rural microfinance is a credit which grants loans without collateral and guarantees to farmers,it is considerably important to evaluate and control the household credit risk.Through establishing the evaluation index system and then using catastrophe progression theory,three common types of catastrophe system and the normalization formula,we get the comprehensive evaluation.Finally,we take the empirical test and the result shows that this method is simpler and more objective which can be used by the credit cooperatives to decide whether to authorize the loans.展开更多
Poverty alleviation is still one of the major challenges in developing countries,especially in transitional economy like China.From the perspective of anti-poverty,this paper examines the impact of formal credit const...Poverty alleviation is still one of the major challenges in developing countries,especially in transitional economy like China.From the perspective of anti-poverty,this paper examines the impact of formal credit constraints(FCCs)and informal credit constraints(IFCCs)on economic vulnerability(EV)using the data from the China Household Income Project(CHIP)survey for 2013(CHIPs 2013)of rural households.The potential endogeneity problem of credit constraints(CCs)is addressed by applying the control function approach within an ordered probit model.The results show that both FCCs and IFCCs have a robust positive and significant impact on the EV of rural households and that the impact of FCCs is greater than that of IFCCs.To identify the potential mechanisms through which CCs affect EV,the seemingly unrelated regressions are used and the potential intercorrelation among these mechanisms is examined.We find that the impact of CCs on EV is partly mediated by health,trust,per capita financial assets and per capita income,whereby health and per capita income contribute to most of the total indirect effect.Thus,policies focus on supply-side and demand-side to improve credit accessibility could reduce rural households'EV,especially through its positive effect on health and per capita income.展开更多
To research the operating mechanisms of rural financial reform, through setting up a contract model, the constraint roles of reputation and legal intervention on the default risk arising in the operating of the credit...To research the operating mechanisms of rural financial reform, through setting up a contract model, the constraint roles of reputation and legal intervention on the default risk arising in the operating of the credit union funds are inspected. Analysis indicates that the increase in reputation cost can reduce the probability of union member default behavior and the probability of turning to the law for the credit union funds. Meanwhile, the amount of loans and the interest rates can increase the probability of turning to the law for the credit union funds. Below the marginal values, the penalty mechanisms can reduce the balancing probabilities of member default behavior and turning to the law for the credit union funds, namely, the penalty has some "substitution effect" for turning to the law for the credit union funds.展开更多
This article expounds the manifestations of imbalance between the rural credit cooperatives and rural economic relations: the rural credit cooperatives fail to effectively promote economic development in rural areas; ...This article expounds the manifestations of imbalance between the rural credit cooperatives and rural economic relations: the rural credit cooperatives fail to effectively promote economic development in rural areas; the rural economy is also incapable of effectively promoting the development of the rural credit cooperatives. It analyses the reasons for imbalance between the rural credit cooperatives and rural economic relations,including the direct reason (loss of function of the rural credit cooperatives) ,the fundamental reason (restricted economic development of agriculture and countryside and relative pauperization of farmers) ,and the deep-seated reason (sluggish rural economic development) . Corresponding countermeasures and proposals are put forward for promoting balanced development of the rural credit cooperatives and rural economy as follows: first, deepen reform of the rural credit cooperatives,strengthen the function of the rural credit cooperatives in serving the needs of agriculture; second, speed up economic development in rural areas,eliminate the economic constraints for the development of the rural credit cooperatives; third,transform the development pattern and the development strategies,foster the macro-institutional environment for balanced development of rural credit cooperatives and rural economy.展开更多
By using the relevant data from 273 valid questionnaires of rural households in Jianhu County, Jiangsu Province, this study emphasizes on the factors of rural households' credit and loan demand by Probit model. Th...By using the relevant data from 273 valid questionnaires of rural households in Jianhu County, Jiangsu Province, this study emphasizes on the factors of rural households' credit and loan demand by Probit model. The results show that the factors that influencing the credit demand of rural households include the features of the rural households, the economic activities of rural households and so on. Among the factors, the operation expenditure of rural households, the education degree of the household head and the understanding degree of the rural credit policies have great impact on the rural households' credit and loan demand. In the end, the suggestions on the basis of the research are put forward: developing diversified economy; improving rural households' income; increasing the reserve of rural labor resources and enhancing farmers' quality; strengthening the promotion of rural credit cooperative and perfecting the service quality of rural credit cooperative.展开更多
The implementation of China's rural revitalization strategy will surely release a huge financial demand in rural areas.How to use the petty credit loan in rural financial institutions to develop rural economy is a...The implementation of China's rural revitalization strategy will surely release a huge financial demand in rural areas.How to use the petty credit loan in rural financial institutions to develop rural economy is an effective way to implement the rural revitalization strategy.This paper first analyzes the significance of petty credit loan in rural financial institutions for rural revitalization strategy,then introduces the remarkable contribution of petty credit loan in China's rural financial institutions to actively solving the problems of farmers about difficult financing and expensive financing and elaborates on the main problems of petty credit loan business in rural financial institutions that still exist in the process of supporting rural revitalization,and finally gives several suggestions on solving the problems about the financing of farmers and the development of petty credit loan business in rural financial institutions.展开更多
It has long been assumed that no solution exists. For decades, Chinese and foreign experts in Beijing have wrestled over evermore elaborate micro-creditschemes with the sole aim of raising the Chinese peasant out of p...It has long been assumed that no solution exists. For decades, Chinese and foreign experts in Beijing have wrestled over evermore elaborate micro-creditschemes with the sole aim of raising the Chinese peasant out of poverty, yet the peasants are too poor to present any collateral to get the loan.展开更多
基金financial supports from the National Natural Science Foundation of China(71661147001)the National Social Science Fund of China(16ZDA021)the Guangzhou Social Science Fund,China(2018GZYB45)。
文摘Financial support is a crucial part of China's poverty alleviation effort.Thus,it is vital to understand how formal credit impacts income growth in rural households.In 2012,2015,and 2018,a survey was conducted to obtain a panel dataset of 592 rural households from 6 poverty-stricken counties in western China,including counties in Guizhou,Yunnan,and Shaanxi provinces.We use the data to examine the effect of formal credit on rural household income and the mechanism that underlies this effect.We find that formal credit can significantly increase rural households'income in deprived areas in western China.Furthermore,formal credit promotes the reallocation of household labor from the agricultural sector to the non-agricultural sector and changes rural households'decisions about investment-consumption behavior.These are the drivers of changes in the amount and structure of household income.Further analyses show that formal credit may widen income inequality among rural households in western China's deprived areas.The individual characteristics of rural households,such as different levels of material capital,human capital,and social capital,bring about differences in the effects of formal credit on income growth.This study emphasizes that the implementation of formal credit is an essential strategy for poverty alleviation in underdeveloped areas,but policymakers should not excessively interfere with the financial market.
基金Supported by Natural Sciences Foundation of China(70973097)
文摘Since rural microfinance is a credit which grants loans without collateral and guarantees to farmers,it is considerably important to evaluate and control the household credit risk.Through establishing the evaluation index system and then using catastrophe progression theory,three common types of catastrophe system and the normalization formula,we get the comprehensive evaluation.Finally,we take the empirical test and the result shows that this method is simpler and more objective which can be used by the credit cooperatives to decide whether to authorize the loans.
基金funded by the National Natural Science Foundation of China(71903141 and 71661147001)the National Social Science Fund of China(20AJY011)+1 种基金the Humanities and Social Sciences of Ministry of Education of China(18YJC790125)the China Postdoctoral Science Foundation(2019M653834XB)。
文摘Poverty alleviation is still one of the major challenges in developing countries,especially in transitional economy like China.From the perspective of anti-poverty,this paper examines the impact of formal credit constraints(FCCs)and informal credit constraints(IFCCs)on economic vulnerability(EV)using the data from the China Household Income Project(CHIP)survey for 2013(CHIPs 2013)of rural households.The potential endogeneity problem of credit constraints(CCs)is addressed by applying the control function approach within an ordered probit model.The results show that both FCCs and IFCCs have a robust positive and significant impact on the EV of rural households and that the impact of FCCs is greater than that of IFCCs.To identify the potential mechanisms through which CCs affect EV,the seemingly unrelated regressions are used and the potential intercorrelation among these mechanisms is examined.We find that the impact of CCs on EV is partly mediated by health,trust,per capita financial assets and per capita income,whereby health and per capita income contribute to most of the total indirect effect.Thus,policies focus on supply-side and demand-side to improve credit accessibility could reduce rural households'EV,especially through its positive effect on health and per capita income.
基金The Philosophy and Social Sciences Program of Guangdong during the 11th Five-Year Plan Period for 2007(No.07D02)the Major Tender of Guangdong for 2007(No.KT005)
文摘To research the operating mechanisms of rural financial reform, through setting up a contract model, the constraint roles of reputation and legal intervention on the default risk arising in the operating of the credit union funds are inspected. Analysis indicates that the increase in reputation cost can reduce the probability of union member default behavior and the probability of turning to the law for the credit union funds. Meanwhile, the amount of loans and the interest rates can increase the probability of turning to the law for the credit union funds. Below the marginal values, the penalty mechanisms can reduce the balancing probabilities of member default behavior and turning to the law for the credit union funds, namely, the penalty has some "substitution effect" for turning to the law for the credit union funds.
基金Supported by the Fundamental Research Funds for the Central Universities in Southwest University for Nationalities (11SZYTD21)
文摘This article expounds the manifestations of imbalance between the rural credit cooperatives and rural economic relations: the rural credit cooperatives fail to effectively promote economic development in rural areas; the rural economy is also incapable of effectively promoting the development of the rural credit cooperatives. It analyses the reasons for imbalance between the rural credit cooperatives and rural economic relations,including the direct reason (loss of function of the rural credit cooperatives) ,the fundamental reason (restricted economic development of agriculture and countryside and relative pauperization of farmers) ,and the deep-seated reason (sluggish rural economic development) . Corresponding countermeasures and proposals are put forward for promoting balanced development of the rural credit cooperatives and rural economy as follows: first, deepen reform of the rural credit cooperatives,strengthen the function of the rural credit cooperatives in serving the needs of agriculture; second, speed up economic development in rural areas,eliminate the economic constraints for the development of the rural credit cooperatives; third,transform the development pattern and the development strategies,foster the macro-institutional environment for balanced development of rural credit cooperatives and rural economy.
基金Supported by National Natural Science Funds (70803021 )the Ph. D. Programs Foundation of Ministry of Education of China(20070307057)
文摘By using the relevant data from 273 valid questionnaires of rural households in Jianhu County, Jiangsu Province, this study emphasizes on the factors of rural households' credit and loan demand by Probit model. The results show that the factors that influencing the credit demand of rural households include the features of the rural households, the economic activities of rural households and so on. Among the factors, the operation expenditure of rural households, the education degree of the household head and the understanding degree of the rural credit policies have great impact on the rural households' credit and loan demand. In the end, the suggestions on the basis of the research are put forward: developing diversified economy; improving rural households' income; increasing the reserve of rural labor resources and enhancing farmers' quality; strengthening the promotion of rural credit cooperative and perfecting the service quality of rural credit cooperative.
文摘The implementation of China's rural revitalization strategy will surely release a huge financial demand in rural areas.How to use the petty credit loan in rural financial institutions to develop rural economy is an effective way to implement the rural revitalization strategy.This paper first analyzes the significance of petty credit loan in rural financial institutions for rural revitalization strategy,then introduces the remarkable contribution of petty credit loan in China's rural financial institutions to actively solving the problems of farmers about difficult financing and expensive financing and elaborates on the main problems of petty credit loan business in rural financial institutions that still exist in the process of supporting rural revitalization,and finally gives several suggestions on solving the problems about the financing of farmers and the development of petty credit loan business in rural financial institutions.
文摘It has long been assumed that no solution exists. For decades, Chinese and foreign experts in Beijing have wrestled over evermore elaborate micro-creditschemes with the sole aim of raising the Chinese peasant out of poverty, yet the peasants are too poor to present any collateral to get the loan.