SHS Web Conf.
Volume 163, 20232023 8th International Conference on Social Sciences and Economic Development (ICSSED 2023)
|Number of page(s)||4|
|Section||Social Economics and Welfare Distribution|
|Published online||28 April 2023|
Is Government Provision Necessary for Rural Credit Gap? Evidence from China
1 School of Government, Beijing Normal University, Beijing, P. R. China
2 Centre of Rural Governance, Beijing Normal University, Beijing, P. R. China
3 International Business Faculty, Beijing Normal University at Zhuhai, Zhuhai City, P. R. China
* Corresponding author: email@example.com
The shortage of rural credit supply is a global practical problem, and also a concern of the world academia. The purpose of this study is to find evidence of the role of government provision in solving rural credit gap, and provide inspiration for countries to solve the shortage of rural credit supply. In the process, this study uses Goldsmith’s financial development theory as the theoretical guidance, and conducts an empirical analysis of the relationship between the financial interrelations ratio (FIR) and government provision in rural China from 2004 to 2019. The findings show that the rural credit gap with market development is not necessarily a credit market failure, and the government provision is not necessarily effective. Because the government provision is costly, wasteful, and less efficient than government intervention on stimulating demand.
© The Authors, published by EDP Sciences, 2023
This is an Open Access article distributed under the terms of the Creative Commons Attribution License 4.0 (https://creativecommons.org/licenses/by/4.0/).
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