Does Financial Liberalization Increase Rural Households’ Credit Availability?——Empirical Analysis based on Rural Ho
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| Title | Does Financial Liberalization Increase Rural Households’ Credit Availability?——Empirical Analysis based on Rural Ho
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| Author | Wang Changyun, Zhong Teng and Zheng Huamao |
| Organization | Renmin University |
| Email | zhongteng@ruc.edu.cn,zhenghm1988@163.com |
| Key Words | Financial Liberalization; Rural Households’ Credit; Industry Structure; Industry Growth |
| Abstract | Using data of the National Rural Fixed-point Survey (NRFS), we investigate the impacts of China’s financial liberalization on rural households’ credit availability using Probit and Tobit models. Our results reveal that, after controlling for other covariates, financial liberalization significantly depresses households’ credit availability from formal financial channels, while slightly increases credit availability from informal channels. The agricultural production loan is significantly depressed by the liberalization, while life loan is not affected. Furthermore, the extent of depression is influenced by the industry structure and industry growth rate. The higher agricultural proportion or growth rate, the lower the depression is. These results are robust to alternative proxies of financial liberalization, different time periods and different economic regions. |
| Serial Number | WP601 |
| Time | 2014-08-02 |
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