Does computer usage change farmers’ production and consumption? Evidence from China

Abstract

Purpose The purpose of this paper is to explore the impact of using computers to obtain information on the farm household’s production and consumption based on a field survey of farm households in the northern China. Design/methodology/approach The most important methods applied are instrumental variable (IV) method and propensity score matching (PSM) method. Estimators of IV, PSM and nearest neighborhood matching approaches are considered together to check the robustness of empirical results. Findings This paper careful impact evaluation results suggest that the use of computer not only improves the size of arable land rented in but also reduces family labor input intensity and the probability of selling agricultural outputs at farm-gate markets. Moreover, it also stimulates transportation, garment, housing and insurance expenditures per capita. Research limitations/implications The database of this research comprises cross-section data, which does not support a cross-time comparison. Practical implications These results imply that it is vital to expand the coverage of computer use in rural areas. This may suggest that the importance of improving computer access is crucial for stimulating rural consumption increase. Furthermore, the need for the expansion of internet network coverage in western areas is also of importance. Originality/value First, the authors directly estimate computer usage impacts on a broader range of production and consumption indicators by including land-relative investments, variable investments, labor input and household’s expenditure and provide rigorous impact evaluations on the impact of access to computer. Second, the authors use IV and PSM methods to correct self-selection bias, going beyond the single equation approach in other studies. This enables us to identify the causal relationship between computer usage and farmer’s production and consumption decisions.

Internet Use, Sustainable Agricultural Practices and Rural Incomes: Evidence from China

“…Previous studies investigating the effects of information technology adoption or policy programme intervention have used a propensity score matching (PSM) method (e.g. Fentie and Beyene 2019;Hou et al 2019) and an inverse-probability weighted regression adjusted (IPWRA) estimator (Manda et al 2018;Adolwa et al 2019;Tambo and Mockshell 2018). For example, using the PSM approach, Fentie and Beyene (2019) have analysed the impact of row planting technology on the welfare of rural households in Ethiopia.…”

“…Previous studies have used either a propensity score matching technique or an inverseprobability weighted regression adjusted estimator to estimate the effects of a binary treatment variable (e.g. Adolwa et al 2019;Fentie and Beyene 2019;Hou et al 2019;Manda et al 2018;Tambo and Mockshell 2018). However, the two approaches fail to address the selection bias arising from unobserved factors.…”

“…In this study, we contribute to the literature on sustainable agriculture by exploring the association between Internet use, adoption of SAPs and rural incomes from four aspects. First, unlike previous studies that have considered the role of ICTs such as smartphones and computers (Hou et al 2019;Kiiza and Pederson 2012;Liu et al 2020;Ma et al 2018b), we consider Internet use through access to broadband Internet services. This is because that Internet accessibility enables to support more ICTs devices such as smartphones, computers, tablets and TVs, and it allows all household members to enjoy the benefits associated with Internet use at the same time.…”

“…First, unlike previous studies that have considered the role of ICTs such as smartphones and computers (Hou et al . 2019; Kiiza and Pederson 2012; Liu et al . 2020; Ma et al .…”

Transaction Costs and Farm-to-Market Linkages in China: Empirical Evidence from Apple Producers

“…On the production side, apple producers in China can choose to sell all, a portion, or none of their produce at the farm-gate, or local or global markets. To the best of our knowledge, little research in economics has been conducted on the factors affecting the farmers' market integration in China (Hou, Huo, & Yin, 2019). One explanation for an apple producer's choice of marketing channel(s) may be the transaction costs that alternative outlets impose on sales.…”