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Effects of Credit Constraint on Productivity and Rural Household Income in China

Author

Listed:
  • Dong, Fengxia
  • Lu, Jing
  • Featherstone, Allen M.

Abstract

Chinese rural household has been always facing credit constraints. Few institutions lend loans to farmers because of financial risks. Farmers have to use usury or other informal sources to meet the financial needs for production. This credit constraint has been forcing farmers to deviate from optimal resource allocation and production arrangement. Consequently, it affects farmers’ income growth. Therefore, the objective of this study is to examine how credit constraint affects agricultural productivity and rural household income and discuss some consequent policy implications.

Suggested Citation

  • Dong, Fengxia & Lu, Jing & Featherstone, Allen M., 2010. "Effects of Credit Constraint on Productivity and Rural Household Income in China," 2010 Annual Meeting, July 25-27, 2010, Denver, Colorado 61402, Agricultural and Applied Economics Association.
    • Handle: RePEc:ags:aaea10:61402
    DOI: 10.22004/ag.econ.61402
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    Cited by:

    1. Jing You & Samuel Annim, 2014. "The Impact of Microcredit on Child Education: Quasi-experimental Evidence from Rural China," Journal of Development Studies, Taylor & Francis Journals, vol. 50(7), pages 926-948, July.
    2. Liqiong Lin & Weizhuo Wang & Christopher Gan & Quang T. T. Nguyen, 2019. "Credit Constraints on Farm Household Welfare in Rural China: Evidence from Fujian Province," Sustainability, MDPI, vol. 11(11), pages 1-19, June.
    3. Jiang Du & Miao Zeng & Zhengjuan Xie & Shikun Wang, 2019. "Power of Agricultural Credit in Farmland Abandonment: Evidence from Rural China," Land, MDPI, vol. 8(12), pages 1-14, December.
    4. Evans Sumabe Batung & Kamaldeen Mohammed & Moses Mosonsieyiri Kansanga & Hanson Nyantakyi-Frimpong & Isaac Luginaah, 2023. "Credit access and perceived climate change resilience of smallholder farmers in semi-arid northern Ghana," Environment, Development and Sustainability: A Multidisciplinary Approach to the Theory and Practice of Sustainable Development, Springer, vol. 25(1), pages 321-350, January.
    5. Asres Elias & Makoto Nohmi & Kumi Yasunobu & Akira Ishida, 2013. "Effect of Agricultural Extension Program on Smallholders’ Farm Productivity: Evidence from Three Peasant Associations in the Highlands of Ethiopia," Journal of Agricultural Science, Canadian Center of Science and Education, vol. 5(8), pages 163-163, July.
    6. Daryoto Muslih Utomo & Syafaat Ali Akbar, 2025. "The Impact of People’s Business Credit (KUR) on Economic Growth in the Agricultural Sector of West Nusa Tenggara," Indonesian Treasury Review: Jurnal Perbendaharaan, Keuangan Negara dan Kebijakan Publik, Direktorat Jenderal Perbendaharaan, Kementerian Keuangan, vol. 10(3), pages 244-255.
    7. Awotide, B.A. & Abdoulaye, Tahirou & Alene, Arega & Manyong, Victor M., 2015. "Impact of Access to Credit on Agricultural Productivity: Evidence from Smallholder Cassava Farmers in Nigeria," 2015 Conference, August 9-14, 2015, Milan, Italy 210969, International Association of Agricultural Economists.
    8. Yi, Fujin & Sun, Dingqiang, 2014. "Grain Subsidy, Liquidity Constraints and Food security—Impact of the Grain Subsidy Program on the Grain-Sown Areas in China," 2014 Annual Meeting, July 27-29, 2014, Minneapolis, Minnesota 169779, Agricultural and Applied Economics Association.
    9. Abdul Quddus & Jaclyn D. Kropp, 2020. "Constraints to Agricultural Production and Marketing in the Lagging Regions of Bangladesh," Sustainability, MDPI, vol. 12(10), pages 1-24, May.
    10. Tran, Minh Chau & Gan, Christopher & Hu, Baiding, 2014. "Credit Constraints and Impact on Farm Household Welfare: Evidence from Vietnam’s North Central Coast region," 2014 Conference, August 28-29, 2014, Nelson, New Zealand 187495, New Zealand Agricultural and Resource Economics Society.
    11. Naiping Zhu & Jinlan Yang & Airin Rahman & Md Nazirul Islam Sarker & Sharmin Afrin & Mahfuza Afroj & Md. Din Il Islam & R. B. Radin Firdaus, 2025. "Coping with climate change: an analysis of farmers’ adoption behavior and its impact on production efficiency," Environment, Development and Sustainability: A Multidisciplinary Approach to the Theory and Practice of Sustainable Development, Springer, vol. 27(6), pages 13439-13459, June.
    12. Thi Kieu Van Tran & Ehsan Elahi & Liqin Zhang & Muhammad Abid & Quang Trung Pham & Thuy Duong Tran, 2018. "Gender differences in formal credit approaches: rural households in Vietnam," Asian-Pacific Economic Literature, The Crawford School, The Australian National University, vol. 32(1), pages 131-138, May.
    13. Adewale Isaac Olutumise, 2023. "Impact of credit on the climate adaptation utilization among food crop farmers in Southwest, Nigeria: application of endogenous treatment Poisson regression model," Agricultural and Food Economics, Springer;Italian Society of Agricultural Economics (SIDEA), vol. 11(1), pages 1-19, December.
    14. Nepal Rastra Bank NRB, 2015. "Agricultural Credit and its Impact on Farm Productivity: A Case Study of Kailali District," Working Papers id:7055, eSocialSciences.
    15. Yi, Fujin & Sun, Dingqiang & Zhou, Yingheng, 2015. "Grain subsidy, liquidity constraints and food security—Impact of the grain subsidy program on the grain-sown areas in China," Food Policy, Elsevier, vol. 50(C), pages 114-124.
    16. Jane Musole Kwenye & Xiaoting Hou Jones & Alan Renwick, 2023. "Understanding Land-Use Trade-off Decision Making Using the Analytical Hierarchy Process: Insights from Agricultural Land Managers in Zambia," Land, MDPI, vol. 12(3), pages 1-19, February.
    17. Sabasi, Darlington & Kompaniyets, Lyudmyla, "undated". "Impact of credit constraints on profitability and productivity in U.S. agriculture," 2015 AAEA & WAEA Joint Annual Meeting, July 26-28, San Francisco, California 205689, Agricultural and Applied Economics Association.
    18. Phiri, Isaac, 2020. "The effect of access to finance on commercialisation of smallholder maize farmers in Eswatini," Research Theses 334755, Collaborative Masters Program in Agricultural and Applied Economics.

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