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Do social interactions foster household entrepreneurship? Evidence from online and offline data from China Family Panel Studies

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  • Hu, Debao
  • Zhai, Chenzhe
  • Yan, Zhen

Abstract

Using China Family Panel Studies data, we analyze online and offline social interactions' influence on household entrepreneurial choice. We conclude that social interactions can positively influence household entrepreneurial choice, intensity and performance, and our findings are robust considering the possible endogeneity problem. The mechanisms of information acquisition, financing constraints relaxing and relative wealth concern are valid. In terms of heterogeneity analysis, for entrepreneurs of rural migrant backgrounds (those with agricultural hukou and urban permanent residence), the impact of online social interaction is more significant than it is for others. For households in the eastern regions, social interactions show significant positive impacts on entrepreneurship choices. We also find that the promotion effect of social interactions is more pronounced for households with a higher debt level than for those with a lower debt level.

Suggested Citation

  • Hu, Debao & Zhai, Chenzhe & Yan, Zhen, 2023. "Do social interactions foster household entrepreneurship? Evidence from online and offline data from China Family Panel Studies," China Economic Review, Elsevier, vol. 79(C).
    • Handle: RePEc:eee:chieco:v:79:y:2023:i:c:s1043951x23000500
    DOI: 10.1016/j.chieco.2023.101965
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    Citations

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    Cited by:

    1. Hu, Haoyu & Wang, Wei & Xin, Ge & Ye, Fangjin, 2024. "Impact of city size on self-employment behavior: Evidence from Chinese migrants," Journal of Asian Economics, Elsevier, vol. 95(C).
    2. Dong, Siyuan & Wang, Na & Fan, Chengwei & Chen, Shi & Zhang, Lei, 2024. "E-commerce and rural women entrepreneurship ——Based on the quasi-natural experiment of “comprehensive demonstration policy” for E-commerce in rural areas," Economic Analysis and Policy, Elsevier, vol. 83(C), pages 749-765.
    3. Chen, Bo & Zeng, Ning & Tam, Kwo Ping, 2024. "Do social networks affect household financial vulnerability? Evidence from China," Finance Research Letters, Elsevier, vol. 59(C).
    4. Xin Ding & Ehsan Elahi, 2025. "Social networks, household entrepreneurship, and relative poverty in rural China: the role of information access and informal funding," Palgrave Communications, Palgrave Macmillan, vol. 12(1), pages 1-13, December.
    5. Yixiao Nai & Di Hu & Fei Jin & Beichen Liu, 2025. "The Financial Superiority of Cooperation in Household Entrepreneurship: Insights From the Chinese Household Financial Survey," Managerial and Decision Economics, John Wiley & Sons, Ltd., vol. 46(4), pages 2603-2628, June.

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