Borrowing Amongst Friends: The Economics of Informal Credit in Rural China
Calum Turvey (),
Rong Kong and
No 51658, 2009 Conference, August 16-22, 2009, Beijing, China from International Association of Agricultural Economists
This paper investigates the economic significance of informal borrowing between friends and relatives in rural China. Guided by an economic model of household-production interactions, we provide results from a survey of over 1,500 households including GLM and Logistic regression results. We find evidence of a ‘small farm bias’ in the use of informal credit, but we cannot generalize this to credit rationing as a matter of course. In part we believe that a preference for informal borrowing is related to some forms of credit rationing, spillover effects and collateral as some literature suggests, but our results suggest that by no means are these mutually exclusive or exhaustive.
Keywords: Agricultural; Finance (search for similar items in EconPapers)
References: Add references at CitEc
Citations: View citations in EconPapers (1) Track citations by RSS feed
Downloads: (external link)
https://ageconsearch.umn.edu/record/51658/files/Tu ... t%20Friends.IAAE.pdf (application/pdf)
Journal Article: Borrowing amongst friends: the economics of informal credit in rural China (2010)
This item may be available elsewhere in EconPapers: Search for items with the same title.
Export reference: BibTeX
RIS (EndNote, ProCite, RefMan)
Persistent link: https://EconPapers.repec.org/RePEc:ags:iaae09:51658
Access Statistics for this paper
More papers in 2009 Conference, August 16-22, 2009, Beijing, China from International Association of Agricultural Economists Contact information at EDIRC.
Bibliographic data for series maintained by AgEcon Search ().