The Income Effect of Access to Credit in Rural China:An Empirical Research Based on Micro Survey Data

Based on the micro-data collected by China Household Finance Survey,this paper analyzed the income effect of access to credit in rural China.We found that the access to credit was difficult for fanners,and the average loan size was small;the impact of access to credit on income was positive,and after considering the endogeneity bias,the income effect was more significant;there is little difference between the effects of loans and the effects of private lending,and the effects of borrowing for low income farmers is not significant.