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"CREDIT AVAILABILITY"
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Carbon emissions regulations and FDI inflow: moderating effects of bank credit availability and fiscal capacity for China's prefecture-level cities
2024
This study investigates the effect of carbon emissions regulations on FDI inflow and the moderating effects of bank credit availability and fiscal capacity. According to the “pollution haven” hypothesis (PHH), foreign direct investment (FDI) tends to move to countries/regions with less stringent environmental regulations. Consistent with the PHH, this study finds that stringency of carbon emissions regulations is negatively associated with FDI inflow for Chinese prefectural-level cities during 2004–2018. This study also finds that bank credit availability and local government fiscal capacity mitigate the negative association between carbon emissions regulations and FDI. The results suggest that Chinese cities with low bank credit availability are more likely to relax carbon emissions regulations to attract FDI. Moreover, Chinese cities with high fiscal capacity can use their fiscal expenditures to minimize the negative effect of strict carbon emissions regulations on FDI. The findings imply that China's central government can help the cities achieve sustainable development by facilitating bank financing and providing fiscal support.
Journal Article
Rural Residents’ Digital Payment: The Use and Its Impact on Credit Availability – Evidence Using Extended UTAUT2
2025
In recent years, the essential roles of digital payment have gradually emerged. However, current research on digital payment adoption models rarely incorporates the outcomes of digital payment, and it also gives less consideration to rural residents. Considering these two issues as a research gap, this article establishes a unified digital payment use and credit availability model by extending the UTAUT2 framework in two aspects and applying it to China’s rural residents. The first extension is to add credit availability as an outcome variable of digital payment use. The second is to add two factors important to farmers, perceived riskiness and innovativeness, as constructs. Structural equation modeling is employed to analyze data collected from nearly 500 Chinese rural residents. The results show that almost 90% of rural residents have used digital payment. However, only a low proportion use it for many purposes or frequently. Rural residents’ digital payment use can increase credit availability. Performance expectancy, effort expectancy, social influence, price value, and innovativeness significantly and positively affect digital payment intention and behavior, thereby indirectly improving credit availability. However, the perceived risk does not influence digital payment adoption, possibly due to effective protective behaviors. In addition to the indirect effect, the results show that innovativeness also has a direct impact on credit availability.
JEL Classification: M15, G21.
Journal Article
Decision Making with the Use of Digital Inclusive Financial Systems by New Agricultural Management Entities in Guangdong Province, China: A Unified Theory of Acceptance and Use of Technology-Based Structural Equation Modeling Analysis
by
Liu, Bo
,
Zhang, Lezhu
,
Wang, Jiannan
in
Agricultural industry
,
Agricultural management
,
Artificial intelligence
2023
In the context of China’s rural revitalization and expanding digital economy, this study aims to elucidate how digital financial inclusion technologies can better allocate financial resources across newly evolved agricultural entities—such as family farms, farmers’ cooperatives, and agricultural enterprises. By employing structural equation modeling (SEM) based on the Unified Theory of Acceptance and Use of Technology (UTAUT), we identify key determinants affecting farmers’ credit availability. Our results emphasize the overwhelming role of Digital Financial Inclusion Technology Applications (DAs) in a wide range of financial variables, particularly credit availability (CA). Notably, performance expectation did not exert a significant impact on credit availability, while variables like effort expectation, facilitating conditions, and especially social influence were significant contributors. As for social impacts, social influence emerged as a multifaceted enabler, encouraging collective support within farmer communities and thereby facilitating credit accessibility. In conclusion, our study reinforces the critical influence of DAs in molding the financial landscape and recommends targeted interventions that leverage these technologies and social dynamics to boost financial inclusion and drive rural prosperity.
Journal Article
How Enterprise Resilience Affects Enterprise Sustainable Development—Empirical Evidence from Listed Companies in China
by
Zhang, Lingfu
,
Dou, Yongfang
,
Wang, Hailing
in
Analysis
,
Business enterprises
,
Economic indicators
2025
With the frequent occurrence of various emergencies, the stable operation of enterprises has been seriously affected, and the research of resilience has received more and more attention in various fields. Enterprise resilience (En_RES) is not only related to corporate survival but is also the key to determining whether a company can realize long-term development. To explore the impact of En_RES on enterprise sustainable development (En_SD), this paper conducts an empirical test using panel regression models based on the data of A-share listed companies in China from 2004 to 2022. It is found that En_RES has a significant positive contribution to En_SD, which is more obvious when the degree of environmental uncertainty is lower, the degree of information sharing is higher, and the degree of business complexity is higher. The mechanism test analysis finds that En_RES can further contribute to En_SD by reducing the bankruptcy risk, improving credit availability, and optimizing resource allocation efficiency. This paper innovatively analyzes and verifies the impact of En_RES on En_SD and its functioning mechanism from the perspective of microenterprises, which not only enrich the theoretical relationship between En_RES and En_SD but also provide important references for enterprises to pay attention to and develop resilience in practice, which can help enterprises better cope with challenges, grasp opportunities, and make contributions to the sustainable development of enterprises.
Journal Article
Research on the Influence Mechanism of Land Tenure Security on Farmers’ Cultivated Land Non-Grain Behavior
2022
Cultivated land planting structure is directly related to China’s food security. The Central Rural Work Conference in 2021 pointed out that to ensure food security, attention should be paid to the adjustment of planting structure. Therefore, it is necessary to explore whether land tenure security has an impact on farmers’ cultivated land non-grain behavior. Based on the micro survey data of 550 farmers in the Guanzhong Plain, this paper explores the impact of land tenure security on farmers’ cultivated land non-grain behavior with the help of the OLS model and the Binary Probit model, and further explores its internal transmission mechanism through the mediation effect model. It is found that land tenure security significantly promotes farmers’ cultivated land non-grain behavior. After replacing model estimation, core variables for robustness tests, and solving endogeneity problems, the research conclusion is still valid. The analysis of the influence mechanism shows that land tenure security affects farmers’ cultivated land non-grain behavior by increasing land transfer and agricultural productive investment. Among them, agricultural productive investment has the greatest impact, followed by land transfer. In addition, the study also found that land tenure security can promote their cultivated land non-grain behavior by strengthening their credit availability for farmers with low fragmentation. Heterogeneity analysis results show that off-farm employment and social services can effectively alleviate the impact of land tenure security on farmers’ cultivated land non-grain behavior. This paper provides a new research perspective for analyzing the incentives of cultivated land non-grain from the micro-mechanism. At the same time, it revealed the inner root of the government’s predicament in the governance of cultivated land non-grain. It provided a new reference for the government to formulate new policies for managing non-grained cultivated land.
Journal Article
THE INFLUENCING FACTORS OF CREDIT BEHAVIOR OF AGRICULTURAL SMALL AND MICRO ENTERPRISES IN WESTERN CHINA
by
Wang, Xinyue
,
Bulibuli, Abulizi
,
Tian, Yu
in
agricultural micro and small enterprises
,
bank-enterprise relationship
,
Collateral
2025
Small and Micro Enterprises represent a vital component of China's economy, playing an increasingly significant role in driving economic growth, fostering innovation, and maintaining regional balance. However, financing constraints have long been a major impediment to their development. This challenge is particularly acute for Agricultural Small and Micro Enterprises (ASMEs) in remote western regions of China, which have struggled to find effective solutions to their funding difficulties. This study aims to systematically identify the key factors influencing the credit behavior of agricultural small and micro enterprises (ASMEs) in western China, with the objective of addressing their persistent financing constraints. To systematically investigate the underlying causes of these persistent financing challenges, this study examines 253 ASMEs in Western China, employing a comprehensive methodology that combines descriptive statistical analysis with logistic regression modeling. The results demonstrate that institutional credit constraints from financial institutions manifest primarily in three aspects: the availability of qualifying mortgage collateral, the standardization level of financial statements, and specific requirements regarding loan maturity periods. The analysis confirms that both the provision of adequate collateral and the maintenance of standardized financial documentation significantly improve the likelihood of securing financing. Conversely, financial institutions show a distinct preference for short-term lending to ASMEs, creating additional challenges for enterprises requiring longer-term capital. Beyond these institutional constraints, the study identifies that maintaining strong bank-enterprise relationships—particularly through banking diversification, meaning establishing connections with multiple financial institutions—can effectively mitigate information asymmetry and enhance the probability of successful financing. Furthermore, the research indicates that regions with a higher concentration of small and medium-sized financial institutions tend to foster more competitive financial environments, ultimately benefiting ASMEs' credit access. These findings not only illuminate the multidimensional financing barriers confronting agricultural small and micro enterprises but also provide valuable empirical evidence to support financial institutions in optimizing their service structures and assist government agencies in formulating targeted support policies.
Journal Article
The Impact of Digital Technology Use on Farmers’ Land Transfer-In: Empirical Evidence from Jiangsu, China
by
Chen, Jingru
,
Zeng, Hengyuan
,
Gao, Qiang
in
Accessibility
,
Agricultural economics
,
Agricultural production
2024
In China, characterized by its vast population and limited land, expanding the scale of agricultural operations through the transfer of land management rights is a crucial pathway to achieving agricultural modernization. Using data from the China Land Economic Survey (CLES), we empirically explored the influence of digital technology use on land transfer-in by farmers. Employing the Probit model and the KHB method, this study examined the mechanisms underlying this relationship and addressed the issue of endogeneity through the Conditional Mixed Process (CMP) model, grounded in the instrumental variable method. Key findings include: (1) both the accessibility and the depth of digital technology use significantly facilitated land transfer-in by farmers. For every one-unit increase in digital technology accessibility, the likelihood of land transfer-in escalated by 6.2%; similarly, a one-unit rise in the depth of digital technology use increased this probability by 2.6%. (2) An analysis of the mechanisms indicates that social networks and credit availability played partial mediating roles in the impact of digital technology accessibility and depth on land transfer-in, with social networks exhibiting a stronger mediation effect. (3) Heterogeneity analysis suggests that the impact of digital technology use on land transfer-in was more pronounced in peri-urban villages and among farmers with higher literacy levels. In light of these findings, we proposed policy recommendations to accelerate the development of rural digital infrastructure, enhance digital skill training for farm households, and vigorously promote rural digital inclusive finance.
Journal Article
The Impact of Digital Capabilities on Peasants’ Wage Growth: Evidence from Chinese Farmer Entrepreneurs
2024
The gradual integration of digital technology into traditional Chinese villages has triggered a shift in income distribution from labor to capital, posing challenges to the wage growth of employed peasants. Based on the theory of empowerment, this paper explores the mechanisms of credit availability and talent loss in the interplay between digital capabilities and wage augmentation among employed peasants. This study empirically examines or validates the mechanism of digital capabilities on wage growth for employed peasants through the entropy weight method, the OLS linear model, the mediation effect model, and propensity score matching while using survey data from 490 farmer entrepreneurs as samples. The findings are as follows. (1) The digital capabilities of farmer entrepreneurs have a significant positive impact on the wage growth of employed peasants, and this result remains robust after a series of robustness checks. In terms of hierarchical effects, digital foundational capabilities > digital application capabilities > digital innovation capabilities. (2) Credit availability and talent loss mediate the relationship between digital capabilities and wage growth for employed peasants. (3) The digital capabilities of farmer entrepreneurs who are young, highly educated, and have a low family-dependency ratio exert a more pronounced influence on the wage growth of employed peasants. Additionally, lower policy uncertainty enhances the effect of digital capabilities on wage growth for employed peasants. The study uncovers the empowerment mechanism of digital advancements embedded during the entrepreneurial journey, enriches research on digital capabilities and common prosperity, and provides a feasible path for governments to formulate reasonable entrepreneurship and digital promotion policies.
Journal Article
Understanding Sustenance of Small Farm Holders: A Study of Income Inequality among Farm Households in Indian Punjab
by
Arora, Kashish
,
Kaur, Gurleen
,
Singh, Randeep
in
Agriculture
,
Demographic aspects
,
Employment
2022
The sustenance of marginal and small farm households is a pertinent question given that their number is on the rise in South-Asia. The study aims to assess their present socio-economic profile and the challenges faced in order to draw a roadmap of development for these underprivileged households. The study pertains to Indian Punjab and data from the Situation Assessment Survey of the 70th Round of NSSO are used. The concepts of economic surplus, occupational diversity, farm productivity and vertical and horizontal inequalities are used to achieve the objectives. This study reveals that marginal farm households faced food insecurity as they failed to meet consumption expenditure from the income earned. In fact, small farm households are left with an annual economic surplus of Rs 8890 per capita only, after meeting consumption needs. Income is unevenly distributed among farm households with a Gini coefficient of 0.48. The majority of the marginal and small farm households fall in lower-income quintiles and are occupationally more diversified than their larger counterparts. Horizontal inequalities are lower between the farm-size categories (0.14) than within farm-size categories (0.27). The Gini coefficient within each farm-size category is the highest among marginal farm households (0.50), followed by small farm households (0.45), highlighting their economic stress and tug-of-war survival. Further, the farm households belonging to socially lower castes falls only in the marginal farm-size category and represent the lowest income. Development must be sustainable and inclusive, hence, policies to develop marginal farmers’ centric farming systems and high value crops such as potato, cotton, sugarcane and oilseeds, providing high yielding livestock breeds, value addition through farmer-producer organizations, non-farm employment through MGNREGA, provision of institutional credit at subsidised rate of interest and quality health and education facilities in the public sector are recommended to uplift the affected households.
Journal Article
Human Capital, Social Capital, and Farmers’ Credit Availability in China: Based on the Analysis of the Ordered Probit and PSM Models
2020
Rural credit is very important to the increase of farmers’ income and the development of rural economy, and it has attracted wide attention from scholars. Many scholars have paid attention to the impact of social capital on farmers’ credit availability, but the research conclusions have not yet been unified. In addition, human capital is also one of the important factors that scholars pay attention to. However, the research mainly focuses on farmer education and pays less attention to their health. Based on the China Household Income Project (CHIP2013) database, we evaluated the impact of human capital (education and health of farmers) and social capital on the credit availability of farmers. To ensure the robustness of our results, we used both the ordered probit model and the propensity score matching (PSM) model to carry out the estimations. Therefore, the study not only improves the research framework of the impact of human capital on farmers’ credit availability, but also uses a more accurate method to estimate the net impact of social capital on farmers’ credit availability. The results showed that, firstly, in terms of human capital, farmers’ educational and health levels have a significant positive impact on their formal credit availability, but no significant impact on their informal credit availability. In particular, farmers with a high school education or above are more likely to obtain a formal loan. Secondly, in terms of social capital, interpersonal relationship capital and political relationship capital are beneficial for farmers obtaining loans from formal and informal channels. Organizational relationship capital only has a more significant positive impact on the informal credit availability of farmers. These results imply that formal financial institutions not only pay attention to farmers’ human capital but also their social capital to reduce the risk of lending. However, informal lenders, that is, relatives or friends, pay more attention to the social capital of farmers.
Journal Article