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Digital revolution and rural family income: Evidence from China
Abstract This paper considers the relationship between the digital revolution and the income of rural households in China based on the difference-in-differences (DD) method. Using rich family survey data from the China Family Panel Studies (CFPS) from 2010 to 2018, I show that the digital revolution has a large positive effect on the income of rural households, an effect of approximately ¥1382 ($214) per year, which also applies for less-educated groups. My results can be explained by an increase in the frequency of internet use, especially in relation to work and business activities. The internet promotes China's rural transformation, such as increasing employment, entrepreneurship, and part-time work. In addition, the digital revolution has a direct impact on agricultural production income. This study highlights the importance of the digital revolution in reducing information costs, as it helps broaden channels for farmers to increase income and achieving inclusive regional growth.
Highlights This paper finds that digital revolution has a significant effect on rural family income in China. The digital revolution has a greater effect on low-income families. The digital revolution can promote regional inclusive growth. The reallocation effect of the job creation and the increasing efficiency of agricultural production play a role part in it. My results provide a theoretical basis for developing countries to promote the construction of new infrastructure.
Digital revolution and rural family income: Evidence from China
Abstract This paper considers the relationship between the digital revolution and the income of rural households in China based on the difference-in-differences (DD) method. Using rich family survey data from the China Family Panel Studies (CFPS) from 2010 to 2018, I show that the digital revolution has a large positive effect on the income of rural households, an effect of approximately ¥1382 ($214) per year, which also applies for less-educated groups. My results can be explained by an increase in the frequency of internet use, especially in relation to work and business activities. The internet promotes China's rural transformation, such as increasing employment, entrepreneurship, and part-time work. In addition, the digital revolution has a direct impact on agricultural production income. This study highlights the importance of the digital revolution in reducing information costs, as it helps broaden channels for farmers to increase income and achieving inclusive regional growth.
Highlights This paper finds that digital revolution has a significant effect on rural family income in China. The digital revolution has a greater effect on low-income families. The digital revolution can promote regional inclusive growth. The reallocation effect of the job creation and the increasing efficiency of agricultural production play a role part in it. My results provide a theoretical basis for developing countries to promote the construction of new infrastructure.
Digital revolution and rural family income: Evidence from China
Leng, Xuan (author)
Journal of Rural Studies ; 94 ; 336-343
2022-07-17
8 pages
Article (Journal)
Electronic Resource
English
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