Social capital, finance, and consumption: Evidence from a representative sample of Chinese households

Robert Cull, Li Gan, Nan Gao and Lixin Xu

Journal of Banking & Finance, 2022, vol. 145, issue C

Abstract: Using a sample of Chinese households, we study how a type of social capital, private social networks, affects access to credit and its implications for consumption. We find a strong and likely causal link between private social networks, use of informal credit, and household consumption. Informal credit via private social networks facilitates household consumption especially for households that experienced a recent health shock, that face financial constraints, and that do not have access to formal finance, and the effects are more pronounced in poor regions and rural areas.

Keywords: Informal finance; Social capital; Consumption (search for similar items in EconPapers)
JEL-codes: G15 O16 O17 (search for similar items in EconPapers)
Date: 2022
References: View references in EconPapers View complete reference list from CitEc
Citations: View citations in EconPapers (3)

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Working Paper: Social capital, finance, and consumption: evidence from a representative sample of Chinese households (2016)
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Persistent link: https://EconPapers.repec.org/RePEc:eee:jbfina:v:145:y:2022:i:c:s0378426622002175

DOI: 10.1016/j.jbankfin.2022.106637

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