IDEAS home Printed from https://ideas.repec.org/p/ags/eaa106/7944.html
   My bibliography  Save this paper

Evolution of Rural Financial Market in China: An Institutional "Lock in" or Gradualism?

Author

Listed:
  • Jia, Xiangping
  • Guo, Pei

Abstract

Historically, China's political attempts to provide access to rural credit has met with mixed results and an institutional structure that often strays from intended policy goals. There has been a close correspondence between financial depression and many policy-driven financial institutions that dominated the rural financial system in China. More recently, ongoing reforms are dedicated towards a gradual liberalization within the system. In this study, we explore the context of agricultural transition and political process as defined by the various interlinkages across the Chinese rural financial system. We find that there has been negligible progress in the evolution of the rural financial market in China. The policy-led financial institutions ended up as merely a disbursement window and a costly drain on state budget. Institutional changes were locked in by patching up the existing institutions.

Suggested Citation

  • Jia, Xiangping & Guo, Pei, 2007. "Evolution of Rural Financial Market in China: An Institutional "Lock in" or Gradualism?," 106th Seminar, October 25-27, 2007, Montpellier, France 7944, European Association of Agricultural Economists.
  • Handle: RePEc:ags:eaa106:7944
    as

    Download full text from publisher

    File URL: http://purl.umn.edu/7944
    Download Restriction: no

    More about this item

    Keywords

    rural finance; institutions; intervention; gradualism; China; Financial Economics; E44; N25; D72; Q14;

    JEL classification:

    • E44 - Macroeconomics and Monetary Economics - - Money and Interest Rates - - - Financial Markets and the Macroeconomy
    • N25 - Economic History - - Financial Markets and Institutions - - - Asia including Middle East
    • D72 - Microeconomics - - Analysis of Collective Decision-Making - - - Political Processes: Rent-seeking, Lobbying, Elections, Legislatures, and Voting Behavior
    • Q14 - Agricultural and Natural Resource Economics; Environmental and Ecological Economics - - Agriculture - - - Agricultural Finance

    Statistics

    Access and download statistics

    Corrections

    All material on this site has been provided by the respective publishers and authors. You can help correct errors and omissions. When requesting a correction, please mention this item's handle: RePEc:ags:eaa106:7944. See general information about how to correct material in RePEc.

    For technical questions regarding this item, or to correct its authors, title, abstract, bibliographic or download information, contact: (AgEcon Search). General contact details of provider: http://edirc.repec.org/data/eaaeeea.html .

    If you have authored this item and are not yet registered with RePEc, we encourage you to do it here. This allows to link your profile to this item. It also allows you to accept potential citations to this item that we are uncertain about.

    We have no references for this item. You can help adding them by using this form .

    If you know of missing items citing this one, you can help us creating those links by adding the relevant references in the same way as above, for each refering item. If you are a registered author of this item, you may also want to check the "citations" tab in your RePEc Author Service profile, as there may be some citations waiting for confirmation.

    Please note that corrections may take a couple of weeks to filter through the various RePEc services.

    IDEAS is a RePEc service hosted by the Research Division of the Federal Reserve Bank of St. Louis . RePEc uses bibliographic data supplied by the respective publishers.