How County-Level Agricultural Loans and Fiscal Expenditure Impact Rural Residents¡¯ Income in China¡ª¡ªAn Empirical Study of the Hierarchical Effect by Quantile Regression

Xiaohua Wang and Li Liu ()
Additional contact information
Xiaohua Wang: College of Economics and Management & Postdoctoral Station of Statistics, Southwest University, Chongqing 400715, China
Li Liu: Center for Research in Management, The University of Toulouse 1, Capitole, Toulouse 31042, France

Frontiers of Economics in China-Selected Publications from Chinese Universities, 2016, vol. 11, issue 2, 302-320

Abstract: Using cross-sectional data from 853 counties in 11 western China provinces, we employ quantile regression (QR) and instrumental variable quantile regression (IVQR) to investigate the hierarchical effect of fiscal expenditure and agricultural loan on rural residents¡¯ income. We find: (1) the relationship between agricultural loan and income is consistent with the inverted U-shape (Kuznets curve); (2) the coefficient of quantile regression for rural residents¡¯ loan gradually decreases; particularly, the impact on the high-income group is insignificant (at 0.90 quantile); (3) for 0.10 and 0.50 quantile, the increase of fiscal expenditure would hinder rather than promote income growth; (4) the restraining effect becomes more pronounced for the lower groups; in contrast, there is a significant positive relationship between income and fiscal expenditure for 0.90 quantile¡¯s income group. Implications for government policy formulation are propounded accordingly.

Keywords: fiscal expenditure; agricultural loan; loan for rural residents; rural residents¡¯ income; quantile regression (search for similar items in EconPapers)
JEL-codes: G28 O40 Q14 (search for similar items in EconPapers)
Date: 2016
References: Add references at CitEc
Citations: View citations in EconPapers (1)

Downloads: (external link)
http://journal.hep.com.cn/fec/EN/10.3868/s060-005-016-0017-4 (application/pdf)

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:fec:journl:v:11:y:2016:i:2:p:302-320

Access Statistics for this article

Frontiers of Economics in China-Selected Publications from Chinese Universities is currently edited by LONG Jie

More articles in Frontiers of Economics in China-Selected Publications from Chinese Universities from Higher Education Press
Bibliographic data for series maintained by Frank H. Liu ().