The Dual Threshold Limit of Financing and Formal Credit Availability with Chinese Rural Households: An Investigation Based on a Large Scale Survey

Long Qin, Ruoen Ren and Qinghai Li
Additional contact information
Long Qin: School of Economics and Management, Beihang University, Beijing 100191, China
Ruoen Ren: School of Economics and Management, Beihang University, Beijing 100191, China
Qinghai Li: School of Economics, Nanjing University of Finance and Economics, Nanjing 210046, China

Sustainability, 2018, vol. 10, issue 10, 1-18

Abstract: The literature on credit availability for rural households primarily focuses on the supply side, and largely ignores the demand side. This paper divided the credit process into three stages using large-scale household survey data. It also reviewed the credit process in other developing countries. A dual sample selection model was used to deal with the dual self-selection problem, which has been neglected in previous studies. This paper found that the main obstacle that farmers faced in obtaining financing was fear of applying for credit from formal financial institutions. In addition, there were significant differences in the determinants of different stages of the credit process of rural households.

Keywords: rural households; credit process; dual sample selection model (search for similar items in EconPapers)
JEL-codes: O13 Q Q0 Q2 Q3 Q5 Q56 (search for similar items in EconPapers)
Date: 2018
References: View references in EconPapers View complete reference list from CitEc
Citations: View citations in EconPapers (1)

Downloads: (external link)
https://www.mdpi.com/2071-1050/10/10/3577/pdf (application/pdf)
https://www.mdpi.com/2071-1050/10/10/3577/ (text/html)

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:gam:jsusta:v:10:y:2018:i:10:p:3577-:d:174140

Access Statistics for this article

Sustainability is currently edited by Ms. Alexandra Wu

More articles in Sustainability from MDPI
Bibliographic data for series maintained by MDPI Indexing Manager ().