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Vulnerability, Trust and Microcredit: The Case of China's Rural Poor

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  • Calum G. Turvey
  • Rong Kong

Abstract

This paper investigates the economic conditions of rural households in China. Historical survey data indicate that over 80 per cent of rural households earn less than 4,500 yuan in net disposable income each year, that for the vast majority of rural households disposable income is insufficient to meet food consumption needs, and that in terms of economic growth rural households are receiving an ever decreasing percentage of China's growing economy with rural household incomes being only 31 per cent of urban household income in 2004.

Suggested Citation

  • Calum G. Turvey & Rong Kong, 2008. "Vulnerability, Trust and Microcredit: The Case of China's Rural Poor," WIDER Working Paper Series RP2008-52, World Institute for Development Economic Research (UNU-WIDER).
    • Handle: RePEc:unu:wpaper:rp2008-52
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    File URL: https://www.wider.unu.edu/sites/default/files/rp2008-52.pdf
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    References listed on IDEAS

    as
    1. Harvey James, 2002. "The Trust Paradox: A Survey of Economic Inquiries Into the Nature of Trust and Trustworthiness," Microeconomics 0202001, University Library of Munich, Germany.
    2. James Jr., Harvey S., 2002. "The trust paradox: a survey of economic inquiries into the nature of trust and trustworthiness," Journal of Economic Behavior & Organization, Elsevier, vol. 47(3), pages 291-307, March.
    3. Manfred Zeller, 2006. "A comparative review of major types of rural microfinance institutions in developing countries," Agricultural Finance Review, Emerald Group Publishing, vol. 66(2), pages 195-213, September.
    4. Kandel, Eugene & Lazear, Edward P, 1992. "Peer Pressure and Partnerships," Journal of Political Economy, University of Chicago Press, vol. 100(4), pages 801-817, August.
    5. Stiglitz, Joseph E & Weiss, Andrew, 1981. "Credit Rationing in Markets with Imperfect Information," American Economic Review, American Economic Association, vol. 71(3), pages 393-410, June.
    6. Richard L. Meyer & Geetha Nagarajan, 2006. "Microfinance in developing countries: accomplishments, debates, and future directions," Agricultural Finance Review, Emerald Group Publishing, vol. 66(2), pages 167-193, September.
    7. Valentina M. Hartarska & Martin Holtmann, 2006. "An overview of recent developments in the microfinance literature," Agricultural Finance Review, Emerald Group Publishing, vol. 66(2), pages 147-165, September.
    8. Rabin, Matthew, 1993. "Incorporating Fairness into Game Theory and Economics," American Economic Review, American Economic Association, vol. 83(5), pages 1281-1302, December.
    9. Sjoerd Beugelsdijk & Henri L.F. de Groot & Anton B.T.M. van Schaik, 2004. "Trust and economic growth: a robustness analysis," Oxford Economic Papers, Oxford University Press, vol. 56(1), pages 118-134, January.
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    Cited by:

    1. Turvey, Calum G. & Kong, Rong, 2010. "Informal lending amongst friends and relatives: Can microcredit compete in rural China?," China Economic Review, Elsevier, vol. 21(4), pages 544-556, December.
    2. Al-Jarhi, Mabid, 2010. "Reviving the Ethics of Islamic Finance," MPRA Paper 66732, University Library of Munich, Germany, revised 2011.

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    More about this item

    Keywords

    Credit; Economic equilibrium; Food security; Microfinance; Rural development;
    All these keywords.

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