CREDIT CARD ADOPTION and USAGE in CHINA: URBAN-RURAL COMPARISONS
Abstract
This study examines the differences in credit card behaviors between rural and urban households in China. Using data from a national survey of Chinese households, results show distinct differences between rural and urban respondents in credit card adoption and usage even after controlling for relevant demographic, financial, attitude, and expectation variables. Rural households are less likely to possess a credit card, possibly due to supply side limitations such as lack of financial institutions and low rate of credit card acceptance in rural areas. No urban-rural difference is found in credit card payment behavior. Implications for policymakers and credit card issuers are discussed.
This paper has been withdrawn.