Credit and social unrest: Evidence from 1930s China

Research output: Contribution to journalArticleScientificpeer-review

7 Citations (Scopus)


Do credit contractions trigger social unrest? To answer this question, we turn to a natural experiment from 1930s China, where the 1933 U.S. Silver Purchase program acts as a shock to bank lending. We assemble a hand-collected dataset of loan contracts between banks and firms, labor unrest episodes, and underground Communist Party penetration. The Silver Purchase shock results in a severe credit contraction, and firms borrowing from banks with a larger exposure to it experience increased labor unrest and Communist Party penetration among their workers. These findings contribute to understanding the socio-political consequences of credit shocks.
Original languageEnglish
Pages (from-to)295-315
JournalJournal of Financial Economics
Issue number2
Early online dateMay 2020
Publication statusPublished - Nov 2020


  • credit shocks
  • social unrest


Dive into the research topics of 'Credit and social unrest: Evidence from 1930s China'. Together they form a unique fingerprint.

Cite this