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Mobile Payment and Informal Business: Evidence from China's Household Panel Data

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  • Xue Wang

Abstract

This paper uses household panel data to explore the impact of mobile payments on China's household business activity. Using a difference‐in‐difference fixed effect specification, I find that mobile payment users are more likely to operate small‐scale and self‐employed informal businesses. The impact of using mobile payment primarily derives from the transition of agricultural families to business owners and the development of informal businesses. The paper illustrates an associated increase in employment and income for family members, with more pronounced effects on low‐income and rural households. It also provides prima facie evidence of the increase in fund transfers, which is important for risk sharing that informal businesses may encounter.

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  • Xue Wang, 2020. "Mobile Payment and Informal Business: Evidence from China's Household Panel Data," China & World Economy, Institute of World Economics and Politics, Chinese Academy of Social Sciences, vol. 28(3), pages 90-115, May.
    • Handle: RePEc:bla:chinae:v:28:y:2020:i:3:p:90-115
    DOI: 10.1111/cwe.12334
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    Cited by:

    1. Qing Wang & Wenjing Xu & Yanghua Huang & Jidong Yang, 2022. "The Effect of Fast Internet on Employment: Evidence from a Large Broadband Expansion Program in China," China & World Economy, Institute of World Economics and Politics, Chinese Academy of Social Sciences, vol. 30(3), pages 100-134, May.
    2. Yanna He & Muzaffarjon Ahunov, 2022. "Financial Literacy: The Case of China," China & World Economy, Institute of World Economics and Politics, Chinese Academy of Social Sciences, vol. 30(5), pages 75-101, September.
    3. Boou Chen & Chunkai Zhao, 2021. "Poverty reduction in rural China: Does the digital finance matter?," PLOS ONE, Public Library of Science, vol. 16(12), pages 1-27, December.
    4. Jianmei Zhao & Lele Zhao, 2022. "Mobile payment adoption and the decline in China’s household savings rate," Empirical Economics, Springer, vol. 63(5), pages 2513-2537, November.
    5. Yuhua Li & Xiheng Gong & Jingyi Zhang & Ziwei Xiang & Chengjun Liao, 2022. "The Impact of Mobile Payment on Household Poverty Vulnerability: A Study Based on CHFS2017 in China," IJERPH, MDPI, vol. 19(21), pages 1-20, October.
    6. Panetta, Ida Claudia & Leo, Sabrina & Delle Foglie, Andrea, 2023. "The development of digital payments – Past, present, and future – From the literature," Research in International Business and Finance, Elsevier, vol. 64(C).
    7. Zhao, Chunkai & Wu, Yaqian & Guo, Jianhao, 2022. "Mobile payment and Chinese rural household consumption," China Economic Review, Elsevier, vol. 71(C).
    8. Hongyun Zheng & Wanglin Ma, 2022. "Scan the QR Code of Happiness: Can Mobile Payment Adoption Make People Happier?," Applied Research in Quality of Life, Springer;International Society for Quality-of-Life Studies, vol. 17(4), pages 2299-2310, August.

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