Skip to main content
Article thumbnail
Location of Repository

The role of informal finance in household capital accumulation: evidence from Taiwan

By Timothy Besley and Alec Levenson

Abstract

Economies that experience rapid growth also experience major changes in their consumption patterns, particularly for consumer durables. This paper studies the diffusion of durables in Taiwan between 1977 and 1991. We focus on the link between household accumulation of durables and participation in informal financial institutions. While growth in per capita income in Taiwan had been great, many households still reply on traditional forms of finance. We test the idea that rotating savings and credit associations, which are found worldwide, exist to lower the cost of saving for durables. Our analysis finds evidence of that link

Topics: DS Asia, HC Economic History and Conditions
Publisher: Wiley-Blackwell on behalf of the Royal Economic Society
Year: 1996
OAI identifier: oai:eprints.lse.ac.uk:1533
Provided by: LSE Research Online
Download PDF:
Sorry, we are unable to provide the full text but you may find it at the following location(s):
  • http://onlinelibrary.wiley.com... (external link)
  • http://eprints.lse.ac.uk/1533/ (external link)
  • Suggested articles


    To submit an update or takedown request for this paper, please submit an Update/Correction/Removal Request.