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Rice farming culture and household financial inclusion: Evidence from rural China

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Listed:
  • Fu, Lifu
  • Lu, Weijie
  • Tang, Shan
  • Zhou, Yang

Abstract

Culture plays a pivotal yet subtle role in shaping human behaviors. This study examines the impact of rice farming culture on household financial inclusion, using data from the China Household Finance Survey (2011–2019). Focusing on rural households, we find that rice farming culture significantly lowers household participation in formal financial services. Further analysis reveals that traditional rice farming practices diminish trust and foster dependence on informal credit systems, which likely serve as the underlying mechanisms behind this effect. Our findings remain robust across endogeneity tests and additional robustness checks, offering new insights into the cultural determinants of financial inclusion.

Suggested Citation

  • Fu, Lifu & Lu, Weijie & Tang, Shan & Zhou, Yang, 2026. "Rice farming culture and household financial inclusion: Evidence from rural China," Finance Research Letters, Elsevier, vol. 87(C).
    • Handle: RePEc:eee:finlet:v:87:y:2026:i:c:s154461232502238x
    DOI: 10.1016/j.frl.2025.108985
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    References listed on IDEAS

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    Keywords

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    JEL classification:

    • G21 - Financial Economics - - Financial Institutions and Services - - - Banks; Other Depository Institutions; Micro Finance Institutions; Mortgages
    • Z13 - Other Special Topics - - Cultural Economics - - - Economic Sociology; Economic Anthropology; Language; Social and Economic Stratification
    • O12 - Economic Development, Innovation, Technological Change, and Growth - - Economic Development - - - Microeconomic Analyses of Economic Development

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