Article ID | Journal | Published Year | Pages | File Type |
---|---|---|---|---|
5087338 | Journal of Asian Economics | 2013 | 13 Pages |
Abstract
Our paper examines how credit markets operate through wealth to influence households' entrepreneurial choices. Our results show that policy-led bank branch withdrawal in rural China has a significant negative impact on credit availability to rural households, though unexpectedly the effect is felt more strongly in informal than formal credit markets. Furthermore, we observe that self-employment is impeded by reductions in wealth associated with credit contraction. Policies which provide more and better formal financial services to rural households are predicted to increase the flow of credit, through both formal and informal channels, thereby supporting accumulation, diversification, and economic growth.
Related Topics
Social Sciences and Humanities
Economics, Econometrics and Finance
Economics and Econometrics
Authors
Han Linghui, Denise Hare,