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Impacts of cultural exchange and industrial development on household credit pressure in China

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  • Deng, Lina
  • He, Chenyu
  • Ran, Yi
  • Wang, Chaoyi

Abstract

Given the worldwide rapid increase in household debt, identifying and understanding the cultural and economic factors influencing credit behavior is imperative. Microdata from the 2018 and 2020 waves of the China Family Panel Studies were used to construct a regional index of cultural industry upgrading to examine the impact of cultural exchange and interaction on household credit pressure. Notably, industry upgrading significantly alleviates credit pressure, partially by increasing income satisfaction and future confidence. However, this mitigating effect is diminished by increased household-level cultural consumption, indicating the interconnected roles of cultural exchange, psychological well-being, and financial behavior and providing new insights for the integration of cultural and financial policy design in China.

Suggested Citation

  • Deng, Lina & He, Chenyu & Ran, Yi & Wang, Chaoyi, 2025. "Impacts of cultural exchange and industrial development on household credit pressure in China," Finance Research Letters, Elsevier, vol. 86(PD).
    • Handle: RePEc:eee:finlet:v:86:y:2025:i:pd:s1544612325018616
    DOI: 10.1016/j.frl.2025.108607
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