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Financial inclusion, land title and credit: evidence from China

Author

Listed:
  • Meishan Jiang
  • Krishna P. Paudel
  • Donghui Peng
  • Yunsheng Mi

Abstract

Purpose - The purpose of this paper is to study land title’s credit effect from a financial inclusion perspective in China. The focus is both small land holding and poor farmers. Formal and informal finances are considered to test their differences in land title’s credit effect. Design/methodology/approach - The authors use augmented inverse-probability weights of the doubly robust method to test the effect of land titling on the rural credit market by addressing self-selection, endogeneity and heterogeneity concerns. Findings - Results show that the poor, non-poor and small land holders with land titles are willing to borrow more from formal financial institutions. Land titling increases loan accessibility for non-poor and small land holding farmers. As for informal financing, large land holding and non-poor farmers show a decrease in informal lending. Land titling has a financial inclusion effect for some farmers, but poor farmers’ credit restrictions are not entirely solved by land titling. Originality/value - This is the first study that focuses on the financial inclusion effect of farm land titling in China.

Suggested Citation

  • Meishan Jiang & Krishna P. Paudel & Donghui Peng & Yunsheng Mi, 2020. "Financial inclusion, land title and credit: evidence from China," China Agricultural Economic Review, Emerald Group Publishing Limited, vol. 12(2), pages 257-273, January.
  • Handle: RePEc:eme:caerpp:caer-01-2019-0020
    DOI: 10.1108/CAER-01-2019-0020
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    Citations

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    Cited by:

    1. Wen, Le & Paudel, Krishna P. & He, Qinying, 2023. "Temporary migration and land renting behavior," Economic Analysis and Policy, Elsevier, vol. 78(C), pages 1372-1391.
    2. Li, Jingrong & Zhang, Chenlei & Mi, Yunsheng, 2021. "Land titling and internal migration: Evidence from China," Land Use Policy, Elsevier, vol. 111(C).
    3. Yiru Wang & Honggang Lu & Yuge Chen & Peiwen Yang & Xiangbo Cheng & Fangting Xie, 2023. "The Impact of Farmland Management Rights Mortgage Loan on the Agri-Food Industrial Agglomeration: Case of Hubei Province," Land, MDPI, vol. 12(7), pages 1-17, July.

    More about this item

    Keywords

    Doubly robust estimator; Financial inclusion effect; Formal financial resources; Informal financial resources; Land titling; Q14; C21;
    All these keywords.

    JEL classification:

    • Q14 - Agricultural and Natural Resource Economics; Environmental and Ecological Economics - - Agriculture - - - Agricultural Finance
    • C21 - Mathematical and Quantitative Methods - - Single Equation Models; Single Variables - - - Cross-Sectional Models; Spatial Models; Treatment Effect Models

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