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Determinants of credit constraints for agricultural wholesalers in China
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Following market reforms and economic growth since the late 1970s, agricultural wholesale markets in China have developed substantially and become increasingly important in food distribution. This paper investigates the determinants of credit constraints on agricultural wholesalers. A probit model with sample selection is estimated for credit constraints and demand using data collected via a nationwide survey of 1,422 agricultural wholesalers, of whom approximately 39% were designated as credit-constrained. Empirical results confirm that an absence of relatives in the business supports the notion of further discouraging potential borrowers from applying for credit in the first place. Moreover, the probability of being credit-constrained is significantly lower for legal corporations, wholesalers who have higher-value capital assets, larger-sized wholesalers, and those in a better micro-finance environment. Some policy implications are outlined.
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'Allocating production risks through credit cum insurance contracts: the design and implementation of a fund for small cotton growers to access market finance ' () 21 International Food and Agribusiness Management Review : 237 -248.
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| Insgesamt | Letzte 365 Tage | In den letzten 30 Tagen | |
|---|---|---|---|
| Aufrufe von Kurzbeschreibungen | 0 | 0 | 0 |
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| PDF-Downloads | 180 | 73 | 4 |
Determinants of credit constraints for agricultural wholesalers in China
in International Food and Agribusiness Management ReviewSearch for other papers by Lifang Hu in
Current site
Google Scholar
PubMed
Search for other papers by Rigoberto A. Lopez in
Current site
Google Scholar
PubMed
Search for other papers by Yinchu Zeng in
Current site
Google Scholar
PubMed
Following market reforms and economic growth since the late 1970s, agricultural wholesale markets in China have developed substantially and become increasingly important in food distribution. This paper investigates the determinants of credit constraints on agricultural wholesalers. A probit model with sample selection is estimated for credit constraints and demand using data collected via a nationwide survey of 1,422 agricultural wholesalers, of whom approximately 39% were designated as credit-constrained. Empirical results confirm that an absence of relatives in the business supports the notion of further discouraging potential borrowers from applying for credit in the first place. Moreover, the probability of being credit-constrained is significantly lower for legal corporations, wholesalers who have higher-value capital assets, larger-sized wholesalers, and those in a better micro-finance environment. Some policy implications are outlined.
| Insgesamt | Letzte 365 Tage | In den letzten 30 Tagen | |
|---|---|---|---|
| Aufrufe von Kurzbeschreibungen | 0 | 0 | 0 |
| Gesamttextansichten | 280 | 129 | 8 |
| PDF-Downloads | 180 | 73 | 4 |
