Social Capital, Finance, and Consumption : Evidence from a Representative Sample of Chinese Households

Using a new, nationally representative sample of Chinese households, this paper studies how social capital affects access to credit and its implications for consumption levels. The paper focuses on two specific forms of social capital: private soci...

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Main Authors:	Cull, Robert, Gan, Li, Gao, Nan, Xu, Lixin Colin
Format:	Working Paper
Language:	English en_US
Published:	World Bank, Washington, DC 2016
Subjects:	social capital finance informal finance consumption access to credit private networks party membership party affiliation market development credit market
Online Access:	http://documents.worldbank.org/curated/en/2016/10/26885217/social-capital-finance-consumption-evidence-representative-sample-chinese-households http://hdl.handle.net/10986/25317

id	okr-10986-25317
recordtype	oai_dc
spelling	okr-10986-253172021-04-23T14:04:29Z Social Capital, Finance, and Consumption : Evidence from a Representative Sample of Chinese Households Cull, Robert Gan, Li Gao, Nan Xu, Lixin Colin social capital finance informal finance consumption access to credit private networks party membership party affiliation market development credit market Using a new, nationally representative sample of Chinese households, this paper studies how social capital affects access to credit and its implications for consumption levels. The paper focuses on two specific forms of social capital: private social networks and membership in the Communist Party. Although party affiliation is linked to higher consumption in rural areas, those benefits are direct and thus do not work through credit markets. The main finding is a strong link between private social networks, use of informal credit, and household consumption. Instrumental variable regressions indicate that the link is causal. However, the study finds no evidence that social capital has facilitated formal credit market development in China, as it has in countries with higher levels of private sector development. 2016-11-01T19:35:06Z 2016-11-01T19:35:06Z 2016-10 Working Paper http://documents.worldbank.org/curated/en/2016/10/26885217/social-capital-finance-consumption-evidence-representative-sample-chinese-households http://hdl.handle.net/10986/25317 English en_US Policy Research Working Paper;No. 7873 CC BY 3.0 IGO http://creativecommons.org/licenses/by/3.0/igo/ World Bank World Bank, Washington, DC Publications & Research Publications & Research :: Policy Research Working Paper East Asia and Pacific China
repository_type	Digital Repository
institution_category	Foreign Institution
institution	Digital Repositories
building	World Bank Open Knowledge Repository
collection	World Bank
language	English en_US
topic	social capital finance informal finance consumption access to credit private networks party membership party affiliation market development credit market
spellingShingle	social capital finance informal finance consumption access to credit private networks party membership party affiliation market development credit market Cull, Robert Gan, Li Gao, Nan Xu, Lixin Colin Social Capital, Finance, and Consumption : Evidence from a Representative Sample of Chinese Households
geographic_facet	East Asia and Pacific China
relation	Policy Research Working Paper;No. 7873
description	Using a new, nationally representative sample of Chinese households, this paper studies how social capital affects access to credit and its implications for consumption levels. The paper focuses on two specific forms of social capital: private social networks and membership in the Communist Party. Although party affiliation is linked to higher consumption in rural areas, those benefits are direct and thus do not work through credit markets. The main finding is a strong link between private social networks, use of informal credit, and household consumption. Instrumental variable regressions indicate that the link is causal. However, the study finds no evidence that social capital has facilitated formal credit market development in China, as it has in countries with higher levels of private sector development.
format	Working Paper
author	Cull, Robert Gan, Li Gao, Nan Xu, Lixin Colin
author_facet	Cull, Robert Gan, Li Gao, Nan Xu, Lixin Colin
author_sort	Cull, Robert
title	Social Capital, Finance, and Consumption : Evidence from a Representative Sample of Chinese Households
title_short	Social Capital, Finance, and Consumption : Evidence from a Representative Sample of Chinese Households
title_full	Social Capital, Finance, and Consumption : Evidence from a Representative Sample of Chinese Households
title_fullStr	Social Capital, Finance, and Consumption : Evidence from a Representative Sample of Chinese Households
title_full_unstemmed	Social Capital, Finance, and Consumption : Evidence from a Representative Sample of Chinese Households
title_sort	social capital, finance, and consumption : evidence from a representative sample of chinese households
publisher	World Bank, Washington, DC
publishDate	2016
url	http://documents.worldbank.org/curated/en/2016/10/26885217/social-capital-finance-consumption-evidence-representative-sample-chinese-households http://hdl.handle.net/10986/25317
_version_	1764458947052306432

Social Capital, Finance, and Consumption : Evidence from a Representative Sample of Chinese Households

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