Associate Professor Nan Gao,a researcher of the Base,has published a collaborative paper titled "Demand for Financing, Credit Constraints and Fraud Victimisation " in the Journal of World Economy

Abstract: 
Using nationally representative household survey data, this paper analyses the regional patterns of fraud victimisation and examines the determinants of fraud victimisation. Empirical evidence suggests that fraudulent activities are more intensive in economically developed regions and that there are more fraud victims in economically backward regions. We find that the demand for financing and credit constraints are two important determinants of fraud victimisation. The results are robust to a series of robustness checks dealing with the endogeneity problem. The positive relationship between demand for financing and likelihood of victimisation is reinforced by less developed formal finance services. Further analyses on potential mechanisms show that households with higher levels of demand for financing may invest more in high-risk portfolios and exhibit higher levels of negative emotion. In order to expand their social networks, households facing credit constraints may participate more in social activities，which in turn may increase their exposure to fraud schemes. The findings suggest that promoting the development of inclusive finance and satisfying residents＇demand for financing are of critical importance in preventing fraud victimisation and reducing the associated financial losses．

Key words: fraud victimisation, demand for financing, credit constraints, inclusive finance

Link: https://www.cnki.com.cn/Article/CJFDTotal-SJJJ202204006.htm

Teacher Profile

Nan Gao is an associate professor at the Wenlan School of Zhongnan University of Economics and Law. His research interests include Development Economics, Political Economy and Family Finance. His main research results have been published in Economic Research Journal, Management World, China Economics Quarterly, the Journal of World Economy, Research Management, China Economic Review, Review of Development Economics, Oxford Bulletin of Economics and Statistics, CITIES, etc. He has presided over a National Natural Science Foundation, the Ministry of Education Humanities and Social Science Foundation, and his research achievements have won the eighth Youth Achievement Award for Outstanding Scientific research in institutions of higher learning.