Combining rich and novel datasets from China, we investigate how city-level cultural fractionalization affects social trust and the efficiency of financial intermediation. Using an instrumental variable approach, we find that cultural fractionalization significantly lowers the efficiency of...

Making appropriate regulatory incentive policies for facilitating enterprises to implement green technology innovation while supporting their transformation and upgradation is critical for green credit development. To investigate how the government selects appropriate supervision incentive...

Using rich and novel datasets from China, we establish cultural fractionalization as a shaper of distrust and examine the effect of cultural fractionalization on the efficiency of financial intermediation. Instrumenting cultural fractionalization with geographic conditions, we document robust...