Abstract
ABSTRACT: Based on survey data of the income distribution and living conditions of urban and rural residents collected by the China Economic Monitoring and Analysis Center in 2014, we investigated the mechanisms related to informal credit constraints on farmer health and then empirically analyzed the impacts of such constraints. Results showed that, in general, informal credit constraints significantly negatively impact farmer health. Compared with farmers whose credit was not informally constrained, the probability of farmers who faced informal credit constraints describing their self-rated health as “very good” fell by 6.64%. After controlling for endogenous problems, this proportion rose to 28.87%. Correspondingly, the probability of describing self-rated health as “very bad” increased by 0.45%. After controlling for endogenous problems, this proportion rose to 0.81%. The robustness test showed that our conclusions are strongly robust. Informal credit constraints significantly positively impacted the number of days of illness in 2013 in the sample of farmers, which means farmers who suffered from informal credit constraints required more sick days than those who did not experience informal credit constraints in 2013. As far as we know, this is the first study on the impact of informal credit constraints on Chinese farmer health.
Highlights
Health is one of the ultimate goals of human development (SEN, 1999)
The remainder of this paper are organized as follows: In Section 2, we explained the mechanism by which informal credit constraints affect farmers’ health; in Section 3, we described the data sources used in this paper, define variables, and set up mathematical models; in Section 4, we provided the results of the study; and in Section 5, we outlined our conclusions and suggested some policy implications, including some shortcomings of this study upon which researchers can reference, expand, and deepen
Since the binary variable of informal credit constraints of farmers is defined as processing assignment variables, it interacts with all other control variables in the regression equation of farmers’ health
Summary
Health is one of the ultimate goals of human development (SEN, 1999). With the development of the social economy, health has become a focus. This paper conducts an empirical study on the relationship between informal credit constraints and the health of farmers in rural China. A study focused on 1800 farmers in the Jiangsu and Shandong provinces in China showed that informal credit constraints reduce farmers’ productive and operational incomes by 13.5% (LI & SUN, 2018).
Sign-in/Register to view highlights & summary Talk to us
Join us for a 30 min session where you can share your feedback and ask us any queries you have
Schedule a callDisclaimer: All third-party content on this website/platform is and will remain the property of their respective owners and is provided on "as is" basis without any warranties, express or implied. Use of third-party content does not indicate any affiliation, sponsorship with or endorsement by them. Any references to third-party content is to identify the corresponding services and shall be considered fair use under The CopyrightLaw.
