Rural finance and development in China

Loubere, Nicholas; Zhang, Heather Xiaoquan

doi:10.4324/9780203750742-8

Cited by 7 publications

(9 citation statements)

References 1 publication

Supporting

Mentioning

Contrasting

Order By: Relevance

“…The increase in the availability of credit to public enterprises, firms and households further confirms the development of the financial sector in China. Low‐interest loans available from local banks or financial institutions have reduced poverty levels amongst urban and rural households (Zhang & Loubere, ). While the exceptional growth rate for the past few decades is evidence that China is moderately successful in its policies, it also prompts us to question its impact on inequality.…”

Section: Introductionmentioning

confidence: 99%

The income inequality, financial depth and economic growth nexus in China

2019

View full text Add to dashboard Cite

Income inequality has increased in China despite rapid economic growth. Income inequality could impinge on future development, leading to social tension or political instability. Our study investigates the short‐run and long‐run relationship between three important macroeconomic indicators—income inequality, economic growth and financial depth. We utilise a two‐step procedure of ARDL bounds and Granger causality for the analysis. The bounds test indicates the presence of a cointegrating relationship between income inequality, financial depth and economic growth in the long run. In the second step, we utilise the Granger causality approach. Results show a bidirectional causality between financial depth‐growth and a unidirectional causality between inequality‐growth in the short run. In the long run, results reveal that growth and financial depth determine Gini. Our findings provide support for the inequality‐widening effect due to economic growth and higher credit provided to the private sector. We find no evidence of inequality‐narrowing or income‐equalising effect in the long run for the period of study. It is possible that the government's inclusive growth policies which started less than a decade ago have not taken effect for us to capture the inverted U‐shape income equalising effect significantly.

show abstract

Section: Introductionmentioning

confidence: 99%

The income inequality, financial depth and economic growth nexus in China

2019

View full text Add to dashboard Cite

show abstract

“…Existing genealogical evidence shows that intergenerational mobility was quite low in China between 1300 and 1900(Shiue, 2018).24 This relates to recent evidence that parental background is key in explaining business ownership in China; specifically, children of entrepreneurs are more likely to become entrepreneurs themselves(Jia et al, 2020). To the extent that self-employed small business in rural China often requires access to capital via social network and informal lending (e.g Zhang and Loubere, 2013),. this also suggests that the pre-revolution elite have stronger social ties and are able to excel at network-intensive career paths.…”

mentioning

confidence: 99%

Persistence Despite Revolutions

et al. 2020

View full text Add to dashboard Cite

“…Although state-affiliated financial institutions, such as Agricultural Bank of China (ABC), Rural Credit Cooperative (RCC), and the Postal Savings Bank of China (PSBC) were designed to meet the credit needs of Chinese rural economies (Guo and Jia, 2009), they tended to target business and government-oriented borrowers (Han, 2007;Zhang, 2011). Rural households therefore relied heavily on informal networks based primarily on lending between relatives and friends for credit (Jia, et al, 2010;Turvey and Kong, 2010).…”

Section: Microfinance In Chinamentioning

confidence: 99%

“…Institutions and loan disbursement ofCFPA Microfinance, 2006-2010 CFPA microfinance loan officers extended loans between 2006 and 2010.The authors successfully surveyed 99% of those loan officers, leaving only five not surveyed. 2 To adjust for inflation, the figures are deflated by the consumer price index.3 The real rate of annual interest is calculated by subtracting inflation from the nominal rate of interest charged on loans.…”

mentioning

confidence: 99%

Commercialization and Mission Drift: Evidence from a Large Chinese Microfinance Institution

Jia¹,

Cull²,

Guo³

et al. 2016

View full text Add to dashboard Cite

The Policy Research Working Paper Series disseminates the findings of work in progress to encourage the exchange of ideas about development issues. An objective of the series is to get the findings out quickly, even if the presentations are less than fully polished. The papers carry the names of the authors and should be cited accordingly. The findings, interpretations, and conclusions expressed in this paper are entirely those of the authors. They do not necessarily represent the views of the International Bank for Reconstruction and Development/World Bank and its affiliated organizations, or those of the Executive Directors of the World Bank or the governments they represent.

show abstract

Rural finance and development in China

Cited by 7 publications

References 1 publication

The income inequality, financial depth and economic growth nexus in China

The income inequality, financial depth and economic growth nexus in China

Persistence Despite Revolutions

Commercialization and Mission Drift: Evidence from a Large Chinese Microfinance Institution

Contact Info

Product

Resources

About