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Title E-commerce participation, digital finance and farmers' income
ID_Doc 68167
Authors Yi, FM; Yao, LH; Sun, YC; Cai, Y
Title E-commerce participation, digital finance and farmers' income
Year 2023
Published China Agricultural Economic Review, 15, 4
DOI 10.1108/CAER-03-2023-0053
Abstract Purpose - It is imperative to achieve sustainable growth in farmers' earnings to sustain poverty alleviation efforts and achieve rural revitalization goals. The authors investigated the nature of the non-linear relationship between farmers' e-commerce participation and income growth, analyzed the rationale behind this correlation and examined the moderating effect of digital finance on this relationship.Design/methodology/approach - The authors conducted an empirical investigation using rural household data from the China Household Finance Survey and the regional digital finance index compiled by Peking University. The authors employed a fixed-effect model and a moderating effect model to identify the non-linear influences of e-commerce participation on farmers' income and to analyze the positive synergies of digital finance. The authors used identification and estimation techniques to mitigate the endogeneity problem, specifically employing heteroscedasticity-based instruments.Findings - There is an inverted U-shaped relationship between e-commerce participation and farmers' income. Digital finance reduces the declining trend in the marginal effects of e-commerce and increases marginal values. Furthermore, the synergistic effect can promote the quality and efficiency of business activities by easing credit constraints, reducing risk aversion and stimulating innovative activities, which in turn can lead to sustained revenue growth.Originality/value - Few studies have focused on the non-linear relationship between e-commerce and farmers' income. This implies that achieving sustained income growth using e-commerce alone is difficult. The synergy between e-commerce and digital finance is a feasible path for achieving this goal.
Author Keywords E-commerce participation; Farmer's income; Digital finance; Synergy
Index Keywords Index Keywords
Document Type Other
Open Access Open Access
Source Science Citation Index Expanded (SCI-EXPANDED); Social Science Citation Index (SSCI)
EID WOS:001086428500001
WoS Category Agricultural Economics & Policy; Economics
Research Area Agriculture; Business & Economics
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