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Effects of Credit Constraint on Productivity and Rural Household Income in China

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  • Dong, Fengxia
  • Lu, Jing
  • Featherstone, Allen M.

Abstract

Chinese rural household has been always facing credit constraints. Few institutions lend loans to farmers because of financial risks. Farmers have to use usury or other informal sources to meet the financial needs for production. This credit constraint has been forcing farmers to deviate from optimal resource allocation and production arrangement. Consequently, it affects farmers’ income growth. Therefore, the objective of this study is to examine how credit constraint affects agricultural productivity and rural household income and discuss some consequent policy implications.

Suggested Citation

  • Dong, Fengxia & Lu, Jing & Featherstone, Allen M., 2010. "Effects of Credit Constraint on Productivity and Rural Household Income in China," 2010 Annual Meeting, July 25-27, 2010, Denver, Colorado 61402, Agricultural and Applied Economics Association.
    • Handle: RePEc:ags:aaea10:61402
    DOI: 10.22004/ag.econ.61402
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    References listed on IDEAS

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    1. Anjini Kochar, 1997. "Does Lack of Access to Formal Credit Constrain Agricultural Production? Evidence from the Land Tenancy Market in Rural India," American Journal of Agricultural Economics, Agricultural and Applied Economics Association, vol. 79(3), pages 754-763.
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    Cited by:

    1. Jing You & Samuel Annim, 2014. "The Impact of Microcredit on Child Education: Quasi-experimental Evidence from Rural China," Journal of Development Studies, Taylor & Francis Journals, vol. 50(7), pages 926-948, July.
    2. Tran, Minh Chau & Gan, Christopher & Hu, Baiding, 2014. "Credit Constraints and Impact on Farm Household Welfare: Evidence from Vietnam’s North Central Coast region," 2014 Conference, August 28-29, 2014, Nelson, New Zealand 187495, New Zealand Agricultural and Resource Economics Society.
    3. Sabasi, Darlington & Kompaniyets, Lyudmyla, 2015. "Impact of credit constraints on profitability and productivity in U.S. agriculture," 2015 AAEA & WAEA Joint Annual Meeting, July 26-28, San Francisco, California 205689, Agricultural and Applied Economics Association.
    4. Adewale Isaac Olutumise, 2023. "Impact of credit on the climate adaptation utilization among food crop farmers in Southwest, Nigeria: application of endogenous treatment Poisson regression model," Agricultural and Food Economics, Springer;Italian Society of Agricultural Economics (SIDEA), vol. 11(1), pages 1-19, December.
    5. Liqiong Lin & Weizhuo Wang & Christopher Gan & Quang T. T. Nguyen, 2019. "Credit Constraints on Farm Household Welfare in Rural China: Evidence from Fujian Province," Sustainability, MDPI, vol. 11(11), pages 1-19, June.
    6. Jiang Du & Miao Zeng & Zhengjuan Xie & Shikun Wang, 2019. "Power of Agricultural Credit in Farmland Abandonment: Evidence from Rural China," Land, MDPI, vol. 8(12), pages 1-14, December.
    7. Nepal Rastra Bank NRB, 2015. "Agricultural Credit and its Impact on Farm Productivity: A Case Study of Kailali District," Working Papers id:7055, eSocialSciences.
    8. Awotide, B.A. & Abdoulaye, Tahirou & Alene, Arega & Manyong, Victor M., 2015. "Impact of Access to Credit on Agricultural Productivity: Evidence from Smallholder Cassava Farmers in Nigeria," 2015 Conference, August 9-14, 2015, Milan, Italy 210969, International Association of Agricultural Economists.
    9. Abdul Quddus & Jaclyn D. Kropp, 2020. "Constraints to Agricultural Production and Marketing in the Lagging Regions of Bangladesh," Sustainability, MDPI, vol. 12(10), pages 1-24, May.
    10. Jane Musole Kwenye & Xiaoting Hou Jones & Alan Renwick, 2023. "Understanding Land-Use Trade-off Decision Making Using the Analytical Hierarchy Process: Insights from Agricultural Land Managers in Zambia," Land, MDPI, vol. 12(3), pages 1-19, February.
    11. Thi Kieu Van Tran & Ehsan Elahi & Liqin Zhang & Muhammad Abid & Quang Trung Pham & Thuy Duong Tran, 2018. "Gender differences in formal credit approaches: rural households in Vietnam," Asian-Pacific Economic Literature, The Crawford School, The Australian National University, vol. 32(1), pages 131-138, May.
    12. Yi, Fujin & Sun, Dingqiang & Zhou, Yingheng, 2015. "Grain subsidy, liquidity constraints and food security—Impact of the grain subsidy program on the grain-sown areas in China," Food Policy, Elsevier, vol. 50(C), pages 114-124.
    13. Phiri, Isaac, 2020. "The effect of access to finance on commercialisation of smallholder maize farmers in Eswatini," Research Theses 334755, Collaborative Masters Program in Agricultural and Applied Economics.
    14. Evans Sumabe Batung & Kamaldeen Mohammed & Moses Mosonsieyiri Kansanga & Hanson Nyantakyi-Frimpong & Isaac Luginaah, 2023. "Credit access and perceived climate change resilience of smallholder farmers in semi-arid northern Ghana," Environment, Development and Sustainability: A Multidisciplinary Approach to the Theory and Practice of Sustainable Development, Springer, vol. 25(1), pages 321-350, January.
    15. Yi, Fujin & Sun, Dingqiang, 2014. "Grain Subsidy, Liquidity Constraints and Food security—Impact of the Grain Subsidy Program on the Grain-Sown Areas in China," 2014 Annual Meeting, July 27-29, 2014, Minneapolis, Minnesota 169779, Agricultural and Applied Economics Association.

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