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The role of community mutual aid networks and social relationship capital in household financial vulnerability in China: heterogeneous influence of region

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  • Hang Su

    (Guizhou University of Commerce)

  • Lingjing Duan

    (Guizhou University of Commerce)

Abstract

The advancement of information technology and social transformation has reshaped community interactions in modern society, profoundly influencing the development of community mutual aid networks and social relationship capital. Using panel data from the China Family Panel Studies (CFPS, 2010–2020) comprising 11,029 household-year observations, this study applies instrumental variable estimation with fixed effects to analyze the impact of community mutual aid networks and social relationship capital on household financial vulnerability. The results reveal that these networks and social relationship capital significantly reduce household financial vulnerability. However, the magnitude of this effect exhibits notable heterogeneity across regions. Further analysis indicates that while community mutual aid and social relationship capital facilitate resource and risk-sharing, regional development disparities moderate households’ capacity to leverage external economic opportunities. These findings suggest that policies aimed at enhancing community development and household economic stability must strategically align regional development priorities, resource allocation, and household-specific needs.

Suggested Citation

  • Hang Su & Lingjing Duan, 2025. "The role of community mutual aid networks and social relationship capital in household financial vulnerability in China: heterogeneous influence of region," Palgrave Communications, Palgrave Macmillan, vol. 12(1), pages 1-11, December.
    • Handle: RePEc:pal:palcom:v:12:y:2025:i:1:d:10.1057_s41599-025-05259-z
    DOI: 10.1057/s41599-025-05259-z
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