Credit Access Double Bind in China

• In Event: 2180 - Section on Sociology of Development Refereed Roundtable Session
  In Refereed Roundtable 60min: Table 06. Finance and Investment

Abstract

The aim of this study is to examine gender difference in credit access and credit default. Using panel data drawn from 917 valid credit borrowers covering the period 2012 to 2015 drawn from among 6,849 study subjects and a national household financial survey (n= 29,500) conducted in China, this study focuses on gender difference in small and micro entrepreneurs’ financial behavior, specifically with respect to credit access and credit default.
The study revealed: 1) Women expressed having more barriers to obtaining a business loan than men; 2) Gender had a significant effect on women’ credit default; women were less likely to default a loan than male loan borrowers. An exploration of the reasons for credit access and default found that female loan applicants were more likely to display a lack of knowledge and confidence in loan application. The study contributes to literature by using the Marxian concept of reification in explaining women and their financial behaviors in China.

Author

• Huacen Xu, University of Maryland-College Park