Microfinance, self-employment, and entrepreneurs in less developed areas of rural china

Xiangping Jia, Cheng Xiang, Jikun Huang*

*Corresponding author for this work

Research output: Contribution to journalArticlepeer-review

30 Citations (Scopus)

Abstract

China is experiencing a transformation, as vast numbers of rural laborers move toward off-farm employment. In such a transformation, the role of credit is unclear. The overall goal of this study is to examine the impact of access to credit by rural households on employment decision-making by rural laborers in China. Based on longitudinal data concerning 1992 rural households in China, this study finds that the use of credit is immense in rural China. Among different types of credit, access to microfinance significantly increased farmers' time working on self-employment activities, especially for the poor households. Credit from formal financial institutions and informal networks had no such effect.

Original languageEnglish
Pages (from-to)94-103
Number of pages10
JournalChina Economic Review
Volume27
DOIs
Publication statusPublished - Sept 2013
Externally publishedYes

Keywords

  • Credit
  • Labor
  • Off-farm
  • Poverty
  • Self-employment

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