Elite Capture of Rural Credit Market in China: Stratified Comparison between Poor and Non-poor Counties
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| Title | Elite Capture of Rural Credit Market in China: Stratified Comparison between Poor and Non-poor Counties
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| Author | Wen Tao, Zhu Jiong and Wang Xiaohua |
| Organization | College of Economics and Management，Southwest University；Postdoctoral Station of Statistics, Southwest University |
| Email | wtwyy@163.com；zhujswu@163.com；55693028@163.com |
| Key Words | Loan for rural residents; Elite capture; IVRQ model |
| Abstract | Providing cheap credit fund to rural residents needs to look into the main body that is usually controlled by elite with low transaction cost. In the long term, the behavior of elite deviates from the overall interests, and "elite capture" mechanism is developed in rural credit market. This paper conducts an empirical research based on the data of the questionnaires survey from 10 provinces in China, to study the "elite capture" mechanism of rural credit market via the IVQR model. The results showed that the "elite capture" mechanism in non-poor counties is significantly different from that of poor counties. "Elite capture" mechanism of rural credit market in poor counties has not been formed completely. In contrast to non-poor counties where "elite capture" mechanism is widely distributed over rural credit market, leading to structure distortions, function dislocation and target deviation. It’s necessary to establish an inclusive financial system to break the existing configuration, to ensure fair transfer of funds and to establish a co-development mechanism. |
| Serial Number | WP943 |
| Time | 2015-11-03 |
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