Although the increasing adoption of digital finance in recent years has exerted a wide-ranging influence on farmers’ consumption and production activities, many farmers in China still seriously suffer from digital financial exclusion. Few studies have documented the different impacts of e-commerce adoption characterized by online purchases and sales on farmers’ participation in the digital financial market measured by their engagement in digital payments, digital wealth management, and digital credit in rural China. Using survey data from 832 entrepreneurial households in rural China, we contribute to the literature by confirming that both online purchases and sales have a robust significant and positive impact on farmers’ participation in the digital financial market and that this impact on digital wealth management is successively larger than that on digital payments and digital credit, with the propensity score matching (PSM) method and instrument variable (IV) approach employed. We further discover that the impact of online purchases and sales on farmers’ participation in the digital financial market is significantly mediated by digital financial literacy. Moreover, the impact of online purchases and sales on farmers’ participation in the digital financial market is larger for those with high education levels, pursuing skills training, running new agricultural operation entities (i.e., family farms, professional cooperatives), and engaging in agricultural entrepreneurship. Our findings suggest that more effective measures to enhance adoption rates of online purchases and sales, innovation in rural market-oriented digital financial products and services, systematic training for farmers in e-commerce skills as well as digital financial literacy, and differentiated support measures for different groups of farmers to reduce the gap are urgently needed in China.
Application of information and communication technologies (ICTs) in general and e-commerce development in particular is increasingly becoming one of the important driving forces of transforming rural economy in China. Based on two sets of household survey datasets in 2015-2019, this study documents the overall trends of major ICTs' adoption and e-commerce in rural China and farmers' selling fruits online in more developed e-commerce villages in two provinces, and examines the enabling and constraint factors for farmers to adopting ICTs and using ecommerce to sell products. The results show that, although the increase has been impressive, there is still plenty of room for the diffusion of ICTs and e-commerce. Empirical analyses suggest that human capital, social network, resource endowment, ICT infrastructure and locations are the main determinants of household's or individual's adoption of ICTs, and the producer selling their fruits through e-commerce. Moreover, this study provides new and strong evidence of intergenerational support for aged and less schooling farmers from their children to engage in online sale. However, this study also points out that a new digital divide on the spreads of ICTs and e-commerce has emerged across regions and among farmers in rural China. The paper concludes with several policy implications on fostering rapid and inclusive ICT application and e-commerce development in rural areas in the coming digital era.
The usage of information and communication technologies (ICTs) is increasingly becoming an important driving force for transforming the rural economy in China. Using a unique nationally-representative household survey dataset in 2015–2019, this study documents the overall trends of internet access, computer and smartphone usage, and e-commerce adoption in rural China and examines the main factors affecting farmers’ adoption of major ICTs. The results show that the increase in usage of ICTs has been impressive. Empirical analyses suggest that human capital, resource endowment, ICT infrastructure, and neighborhood influence are the main determinants of households’ or individuals’ adoption of ICTs. However, a digital divide has emerged across regions and among farmers. This study concludes with several policy implications for fostering rapid and inclusive usage of ICTs in rural areas in the coming digital era.
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