Land disasters and farmers’ private credit

Zhenqi Fu and Yunqing Tao

Finance Research Letters, 2022, vol. 47, issue PB

Abstract: Using data from the China Land Economic Survey (CLES), we study the impact of land disasters on farmers’ private credit. The results show that land disasters significantly promote the probability of farmers’ private credit. The mechanism is that land disasters reduce farmers’ incomes and increase farmers’ expenditures for restoring production, which directly increase farmers’ demand for credit. In addition, the frequent occurrence of land disasters force farmers to unite to resist disasters, which increase mutual trust among farmers and provide a social foundation for the development of private credit. Finally, farmers have certain stratified characteristics in response to land disasters.

Keywords: Disasters; Rural land; Private credit; Trust (search for similar items in EconPapers)
Date: 2022
References: View references in EconPapers View complete reference list from CitEc
Citations: View citations in EconPapers (1)

Downloads: (external link)
http://www.sciencedirect.com/science/article/pii/S1544612322001088
Full text for ScienceDirect subscribers only

Related works:
This item may be available elsewhere in EconPapers: Search for items with the same title.

Export reference: BibTeX RIS (EndNote, ProCite, RefMan) HTML/Text

Persistent link: https://EconPapers.repec.org/RePEc:eee:finlet:v:47:y:2022:i:pb:s1544612322001088

DOI: 10.1016/j.frl.2022.102796

Access Statistics for this article

Finance Research Letters is currently edited by R. Gençay

More articles in Finance Research Letters from Elsevier
Bibliographic data for series maintained by Catherine Liu ().