Formal Credit Constraint and Prevalence of Reciprocal Loans in Rural China

The unique feature of the rural credit market in China is the dominance of zero collateral and zero-interest reciprocal lending and its long-term coexistence with the formal loan. This paper investigates the association between formal credit constraint and prevalence of reciprocal loans in rural Chi...

Descripción completa

Guardado en:

Detalles Bibliográficos
Autor principal:	Zhao Jianmei
Formato:	article
Lenguaje:	EN
Publicado:	De Gruyter 2021
Materias:	credit constraint reciprocal loan debt of gratitude sample selection q12 o14 q18 Economics as a science HB71-74
Acceso en línea:	https://doaj.org/article/607a01b79953475a8c939e12476495cd
Etiquetas:	Agregar Etiqueta Sin Etiquetas, Sea el primero en etiquetar este registro!

id	oai:doaj.org-article:607a01b79953475a8c939e12476495cd
record_format	dspace
spelling	oai:doaj.org-article:607a01b79953475a8c939e12476495cd2021-12-05T14:11:00ZFormal Credit Constraint and Prevalence of Reciprocal Loans in Rural China2451-345810.1515/openec-2020-0110https://doaj.org/article/607a01b79953475a8c939e12476495cd2021-04-01T00:00:00Zhttps://doi.org/10.1515/openec-2020-0110https://doaj.org/toc/2451-3458The unique feature of the rural credit market in China is the dominance of zero collateral and zero-interest reciprocal lending and its long-term coexistence with the formal loan. This paper investigates the association between formal credit constraint and prevalence of reciprocal loans in rural China. Based on the identification of rural households’ credit constraint status, we examine the effects of credit constraint on the utilization of informal reciprocal loans. We find that formal credit constraint significantly increases rural borrowers’ reliance on reciprocal loans, whereas the “debt of gratitude” imposes an uncertain obligation on rural borrowers, and discourages them from borrowing amongst relatives and friends.Zhao JianmeiDe Gruyterarticlecredit constraintreciprocal loandebt of gratitudesample selectionq12o14q18Economics as a scienceHB71-74ENOpen Economics, Vol 4, Iss 1, Pp 1-13 (2021)
institution	DOAJ
collection	DOAJ
language	EN
topic	credit constraint reciprocal loan debt of gratitude sample selection q12 o14 q18 Economics as a science HB71-74
spellingShingle	credit constraint reciprocal loan debt of gratitude sample selection q12 o14 q18 Economics as a science HB71-74 Zhao Jianmei Formal Credit Constraint and Prevalence of Reciprocal Loans in Rural China
description	The unique feature of the rural credit market in China is the dominance of zero collateral and zero-interest reciprocal lending and its long-term coexistence with the formal loan. This paper investigates the association between formal credit constraint and prevalence of reciprocal loans in rural China. Based on the identification of rural households’ credit constraint status, we examine the effects of credit constraint on the utilization of informal reciprocal loans. We find that formal credit constraint significantly increases rural borrowers’ reliance on reciprocal loans, whereas the “debt of gratitude” imposes an uncertain obligation on rural borrowers, and discourages them from borrowing amongst relatives and friends.
format	article
author	Zhao Jianmei
author_facet	Zhao Jianmei
author_sort	Zhao Jianmei
title	Formal Credit Constraint and Prevalence of Reciprocal Loans in Rural China
title_short	Formal Credit Constraint and Prevalence of Reciprocal Loans in Rural China
title_full	Formal Credit Constraint and Prevalence of Reciprocal Loans in Rural China
title_fullStr	Formal Credit Constraint and Prevalence of Reciprocal Loans in Rural China
title_full_unstemmed	Formal Credit Constraint and Prevalence of Reciprocal Loans in Rural China
title_sort	formal credit constraint and prevalence of reciprocal loans in rural china
publisher	De Gruyter
publishDate	2021
url	https://doaj.org/article/607a01b79953475a8c939e12476495cd
work_keys_str_mv	AT zhaojianmei formalcreditconstraintandprevalenceofreciprocalloansinruralchina
_version_	1718371475861274624

Formal Credit Constraint and Prevalence of Reciprocal Loans in Rural China

Ejemplares similares