An analysis of the factors influencing choice of microcredit sources and impact of participation on household income

Z. Ding

No 276953, 2018 Conference, July 28-August 2, 2018, Vancouver, British Columbia from International Association of Agricultural Economists

Abstract: It is widely accepted that rural microcredit has the potential to contribute to poverty reduction in developing countries. This paper examines the factors that affect rural residents decisions to participate in different types of microcredit, and how these factors impact on household income and consumption, using cross-sectional data from a survey in China. A multinomial endogenous switching regression model is employed to account for selection bias and treatment effects. The empirical findings indicate that family size, dependency ratio, local casual wage rate, credit information and shocks mainly determine the selection of different credit sources. Furthermore, the estimates reveal that participation in microcredit tends to increase both per capita income and consumption significantly. Acknowledgement :

Keywords: Food; Security; and; Poverty (search for similar items in EconPapers)
Date: 2018-07
New Economics Papers: this item is included in nep-dev, nep-mfd and nep-tra
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Persistent link: https://EconPapers.repec.org/RePEc:ags:iaae18:276953

DOI: 10.22004/ag.econ.276953

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