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Financial Inclusion in China: Use of Credit

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  • Zibei Chen

    (Louisiana State University)

  • Minchao Jin

    (NYU Silver School of Social Work)

Abstract

Limited access to credit can cause financial vulnerability for a household and economic loss for a country. Previous studies have shown that only small portions of the population in developing countries had access to formal credit, and few of them focused on Chinese populations. Using data from 2011 China Household Financial Studies, this study explores Chinese households’ credit use. We found that over half of the sample (53.21%) used credit, and only 19.77% used formal credit. Use of formal credit was associated with socioeconomic characteristics of household heads (e.g., employment, education) and households (e.g., income, net worth). The findings suggest that promoting financial inclusion in China involves expanding access to formal credit among the socially and economically disadvantaged households.

Suggested Citation

  • Zibei Chen & Minchao Jin, 2017. "Financial Inclusion in China: Use of Credit," Journal of Family and Economic Issues, Springer, vol. 38(4), pages 528-540, December.
    • Handle: RePEc:kap:jfamec:v:38:y:2017:i:4:d:10.1007_s10834-017-9531-x
    DOI: 10.1007/s10834-017-9531-x
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    9. Lim, Sung Soo & Bone, Matthew, 2022. "Optimism, debt accumulation, and business growth," Journal of Behavioral and Experimental Economics (formerly The Journal of Socio-Economics), Elsevier, vol. 97(C).
    10. Ozili, Peterson K, 2022. "Fault Lines in Financial Inclusion," MPRA Paper 115777, University Library of Munich, Germany.
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    12. Ozili, Peterson K, 2022. "Does economic policy uncertainty reduce financial inclusion?," MPRA Paper 111052, University Library of Munich, Germany.
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