An empirical analysis on interest rate elasticity of demand about rural small credit in China

  • Hong Ru Wu*
  • , Man Ying Bai
  • *Corresponding author for this work

Research output: Chapter in Book/Report/Conference proceedingConference contributionpeer-review

Abstract

It is thought that high interest rate should be carried out by small credit institutions to meet the demand of local farmers and maintain sustainable development. This paper analyses the interest rate elasticity of demand about small credit in the rural area in Guizhou. The result reveals that farmers are sensitive to the interest rate and the high interest rate is not possibly accepted by them. The view of high interest rate is only from the perspective of the small credit suppliers and the demanders are neglected. It is verified that increasing or decreasing artificially the interest rate is not rational. The interest rate should be determined by game between suppliers and demanders in the credit market. Understanding the influence of interest rate elasticity is the key to strengthen the service of small credit institutions.

Original languageEnglish
Title of host publication2008 International Conference on Wireless Communications, Networking and Mobile Computing, WiCOM 2008
DOIs
StatePublished - 2008
Event2008 International Conference on Wireless Communications, Networking and Mobile Computing, WiCOM 2008 - Dalian, China
Duration: 12 Oct 200814 Oct 2008

Publication series

Name2008 International Conference on Wireless Communications, Networking and Mobile Computing, WiCOM 2008

Conference

Conference2008 International Conference on Wireless Communications, Networking and Mobile Computing, WiCOM 2008
Country/TerritoryChina
CityDalian
Period12/10/0814/10/08

Keywords

  • Interest rate elasticity
  • Rural area
  • Small credit

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