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Web of Proceedings - Francis Academic Press
Web of Proceedings - Francis Academic Press

Credit in Rural China: Why is It Hard to Get, and How to Make It More Available

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DOI: 10.25236/iwass.2021.050


Ying Meng, Linda J. Cox and Jing Wang

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Ying Meng


Agricultural development and social welfare in rural areas is directly affected by the availability of credit. This paper is examines the rural households’ explicit and implicit demand for credit and empirically investigates the credit rationing that occurred in China. Five different types of credit rationing were investigated that affected 52.16 per cent of sampled households. Respondents’ wealth characteristics and risk reducing strategies including insurance and involvement in farm cooperatives appears to be effective in reducing their exposure to credit rationing.


Rural finance, Credit demand, Credit rationing, Loans, Determinants