IDEAS home Printed from https://ideas.repec.org/a/gam/jsusta/v14y2022i20p13575-d948274.html
   My bibliography  Save this article

Examining the Impact of Digital Finance on Farmer Consumption Inequality in China

Author

Listed:
  • Lang Wang

    (School of Business Administration, Zhongnan University of Economics and Law, Wuhan 430073, China)

  • Yuping Chen

    (School of Business Administration, Zhongnan University of Economics and Law, Wuhan 430073, China)

  • Shijun Ding

    (School of Business Administration, Zhongnan University of Economics and Law, Wuhan 430073, China)

Abstract

The development of digital finance has significantly changed farmer consumption behavior. This study used data from the China Household Finance Survey of 2015, 2017, and 2019 to examine whether digital finance can eliminate consumption inequality among farmers in China. In doing so, it provides empirical evidence for strategies for balancing social development and ensuring sustainable economic development. This study had three main findings. First, digital finance can significantly alleviate consumption inequality among farmers. Compared to basic consumption, digital finance is more effective at alleviating developmental consumption inequality. Second, digital finance can reduce consumption inequality among farmers by increasing online shopping and reducing income inequality. Third, the effect of digital finance on farmer consumption inequality is more significant in eastern China, among low-income farmers, and among farmers with primary education. These findings indicate that there is a “digital divide” and an “education threshold” in digital finance. Based on these results, this paper suggests measures for alleviating consumption inequality among farmers.

Suggested Citation

  • Lang Wang & Yuping Chen & Shijun Ding, 2022. "Examining the Impact of Digital Finance on Farmer Consumption Inequality in China," Sustainability, MDPI, vol. 14(20), pages 1-16, October.
    • Handle: RePEc:gam:jsusta:v:14:y:2022:i:20:p:13575-:d:948274
    as

    Download full text from publisher

    File URL: https://www.mdpi.com/2071-1050/14/20/13575/pdf
    Download Restriction: no
    File URL: https://www.mdpi.com/2071-1050/14/20/13575/
    Download Restriction: no
    ---><---

    References listed on IDEAS

    as
    1. Bruce D. Meyer & James X. Sullivan, 2003. "Measuring the Well-Being of the Poor Using Income and Consumption," NBER Working Papers 9760, National Bureau of Economic Research, Inc.
    2. Sekabira, Haruna & Qaim, Matin, 2017. "Can Mobile Phones Improve Gender Equality and Nutrition? Panel Data Evidence from Farm Households in Uganda," GlobalFood Discussion Papers 256215, Georg-August-Universitaet Goettingen, GlobalFood, Department of Agricultural Economics and Rural Development.
    3. Falk, Tomas & Kunz, Werner H. & Schepers, Jeroen J.L. & Mrozek, Alexander J., 2016. "How mobile payment influences the overall store price image," Journal of Business Research, Elsevier, vol. 69(7), pages 2417-2423.
    4. Sekabira, Haruna & Qaim, Matin, 2017. "Can mobile phones improve gender equality and nutrition? Panel data evidence from farm households in Uganda," Food Policy, Elsevier, vol. 73(C), pages 95-103.
    5. Hongbo Zhao & Xiao Zheng & Lin Yang, 2022. "Does Digital Inclusive Finance Narrow the Urban-Rural Income Gap through Primary Distribution and Redistribution?," Sustainability, MDPI, vol. 14(4), pages 1-19, February.
    6. Naishu Yu & Yanzhe Wang, 2021. "Can Digital Inclusive Finance Narrow the Chinese Urban–Rural Income Gap? The Perspective of the Regional Urban–Rural Income Structure," Sustainability, MDPI, vol. 13(11), pages 1-18, June.
    Full references (including those not matched with items on IDEAS)

    Citations

    Citations are extracted by the CitEc Project, subscribe to its RSS feed for this item.
    as


    Cited by:

    1. Dongjing Chen & Xiaotong Guo, 2023. "Impact of the Digital Economy and Financial Development on Residents’ Consumption Upgrading: Evidence from Mainland China," Sustainability, MDPI, vol. 15(10), pages 1-25, May.
    2. Qianqian Li & Qilin Liu, 2023. "Impact of Digital Financial Inclusion on Residents’ Income and Income Structure," Sustainability, MDPI, vol. 15(3), pages 1-20, January.

    Most related items

    These are the items that most often cite the same works as this one and are cited by the same works as this one.
    1. Sikhulumile Sinyolo & Catherine Ndinda & Conrad Murendo & Sithembile A. Sinyolo & Mudzunga Neluheni, 2020. "Access to Information Technologies and Consumption of Fruits and Vegetables in South Africa: Evidence from Nationally Representative Data," IJERPH, MDPI, vol. 17(13), pages 1-17, July.
    2. Jian Liu & Yanjun Ren & Thomas Glauben, 2021. "The effect of income inequality on nutritional outcomes: Evidence from rural China," Journal of New Economy, Ural State University of Economics, vol. 22(3), pages 125-143, October.
    3. Chrisendo, Daniel & Siregar, Hermanto & Qaim, Matin, 2022. "Oil palm cultivation improves living standards and human capital formation in smallholder farm households," World Development, Elsevier, vol. 159(C).
    4. Gershom Endelani Mwalupaso & Xu Tian & Xianhui Geng, 2020. "Rethinking Food Production: Nexus of Mobile Phones and Production Cost Minimization," IJERPH, MDPI, vol. 17(7), pages 1-12, April.
    5. Evans, Olaniyi, 2018. "Digital Agriculture: Mobile Phones, Internet & Agricultural Development in Africa," MPRA Paper 90359, University Library of Munich, Germany.
    6. Ningan Yang & Yawen Ding & Shi Min & Junfei Bai, 2022. "Does rubber expansion hinder the migration of rural labor? Evidence from southwest China?," Review of Development Economics, Wiley Blackwell, vol. 26(2), pages 1108-1131, May.
    7. Amy Quandt & Jonathan D Salerno & Jason C Neff & Timothy D Baird & Jeffrey E Herrick & J Terrence McCabe & Emilie Xu & Joel Hartter, 2020. "Mobile phone use is associated with higher smallholder agricultural productivity in Tanzania, East Africa," PLOS ONE, Public Library of Science, vol. 15(8), pages 1-16, August.
    8. Jiexi Shen & Zhanguo Zhu & Matin Qaim & Shenggen Fan & Xu Tian, 2023. "E‐commerce improves dietary quality of rural households in China," Agribusiness, John Wiley & Sons, Ltd., vol. 39(S1), pages 1495-1511, December.
    9. Ameen, Nisreen & Shah, Mahmood Hussain & Sims, Julian & Choudrie, Jyoti & Willis, Robert, 2020. "Are there peas in a pod when considering mobile phone and mobile applications use: A quantitative study," Journal of Retailing and Consumer Services, Elsevier, vol. 55(C).
    10. Campenhout, Bjorn Van, 2021. "ICTs to Address Information Inefficiencies in Food Supply Chains," 2021 Conference, August 17-31, 2021, Virtual 315054, International Association of Agricultural Economists.
    11. Peng Nie & Wanglin Ma & Alfonso Sousa-Poza, 2021. "The relationship between smartphone use and subjective well-being in rural China," Electronic Commerce Research, Springer, vol. 21(4), pages 983-1009, December.
    12. Ma, W. & Grafton, Q. & Renwick, A., 2018. "Gender and Income Effects of Smartphone Use: The Case of Rural China," 2018 Conference, July 28-August 2, 2018, Vancouver, British Columbia 277310, International Association of Agricultural Economists.
    13. Ting Jin & Lei Li, 2022. "Does Smartphone Use Improve the Dietary Diversity of Rural Residents? Evidence from Household Survey Data from 5 Provinces," IJERPH, MDPI, vol. 19(17), pages 1-16, September.
    14. Ren, Yanjun & Li, Hui & Wang, Xiaobing, 2019. "Family income and nutrition-related health: Evidence from food consumption in China," Social Science & Medicine, Elsevier, vol. 232(C), pages 58-76.
    15. Zheng, Xuyuan & Lu, Haiyang, 2021. "Does ICT change household decision-making power of the left-behind women? A Case from China," Technological Forecasting and Social Change, Elsevier, vol. 166(C).
    16. Hina Amber & Bezawit Beyene Chichaibelu, 2023. "Narrowing the gender digital divide in Pakistan: Mobile phone ownership and female labor force participation," Review of Development Economics, Wiley Blackwell, vol. 27(3), pages 1354-1382, August.
    17. Aseres Mamo Eshetie & Eunice Matafwali & Gershom Endelani Mwalupaso & Jie Li & Aijun Liu, 2022. "Nexus of Cash Crop Production Using Improved Varieties and Household Food Security," The European Journal of Development Research, Palgrave Macmillan;European Association of Development Research and Training Institutes (EADI), vol. 34(4), pages 1803-1830, August.
    18. David Israel Contreras-Medina & Luis Miguel Contreras-Medina & Joaliné Pardo-Nuñez & Luis Alberto Olvera-Vargas & Carlos Mario Rodriguez-Peralta, 2020. "Roadmapping as a Driver for Knowledge Creation: A Proposal for Improving Sustainable Practices in the Coffee Supply Chain from Chiapas, Mexico, Using Emerging Technologies," Sustainability, MDPI, vol. 12(14), pages 1-26, July.
    19. Bjorn Van Campenhout, 2022. "ICTs to address information inefficiencies in food supply chains," Agricultural Economics, International Association of Agricultural Economists, vol. 53(6), pages 968-975, November.
    20. Luc Jacolin & Massil Keneck & Alphonse Noah, 2019. "Informal Sector and Mobile Financial Services in Developing Countries: Does Financial Innovation Matter?," Working papers 721, Banque de France.

    Corrections

    All material on this site has been provided by the respective publishers and authors. You can help correct errors and omissions. When requesting a correction, please mention this item's handle: RePEc:gam:jsusta:v:14:y:2022:i:20:p:13575-:d:948274. See general information about how to correct material in RePEc.

    If you have authored this item and are not yet registered with RePEc, we encourage you to do it here. This allows to link your profile to this item. It also allows you to accept potential citations to this item that we are uncertain about.

    If CitEc recognized a bibliographic reference but did not link an item in RePEc to it, you can help with this form .

    If you know of missing items citing this one, you can help us creating those links by adding the relevant references in the same way as above, for each refering item. If you are a registered author of this item, you may also want to check the "citations" tab in your RePEc Author Service profile, as there may be some citations waiting for confirmation.

    For technical questions regarding this item, or to correct its authors, title, abstract, bibliographic or download information, contact: MDPI Indexing Manager (email available below). General contact details of provider: https://www.mdpi.com .

    Please note that corrections may take a couple of weeks to filter through the various RePEc services.

    IDEAS is a RePEc service. RePEc uses bibliographic data supplied by the respective publishers.