Accessibility and Impact of Rural Credit Cooperatives Microcredit Programmes to Rural Households: A Case Study from Hubei Province, China

Mohamad Revindo () and Christopher Gan

Chapter 10 in Microfinance in Asia, 2017, pp 319-336 from World Scientific Publishing Co. Pte. Ltd.

Abstract: Microcredit programme was introduced in China in 1994 to ameliorate rural poverty in a financially sustainable way. Since the year 2000, microcredit programmes have been mostly carried out by Rural Credit Cooperatives (RCCs) that have successfully expanded the financial access to farmers and at the same time achieved high timely repayment rate. This chapter draws the case of RCCs’ microcredit in Hubei Province and looks at whether the implementation of RCCs’ microcredit is an effective instrument to improve the rural households’ welfare and whether it actually reaches the poorest population in rural areas. The evidence show that poor rural households are still constrained to access the microcredit due to some household-related factors as well as obstacles at RCCs’ institutional level. The RCCs’ microcredit marginally improve borrowers’ welfare and the positive impact on welfare only takes effect as the cumulative amount of loan grows. RCCs’ microcredit also enables women in rural China to have better social status which is manifested in several dimensions of women empowerment.

Keywords: Microfinance; Poverty Alleviation; Rural Credit; Asia; Grameen Bank (search for similar items in EconPapers)
JEL-codes: F30 (search for similar items in EconPapers)
Date: 2017
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Citations: View citations in EconPapers (3)

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