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What Drives Entrepreneurship in Digital Economy? Evidence from China

Author

Listed:
  • Yin, Zhichao
  • Gong, Xue
  • Guo, Peiyao
  • Wu, Tao

Abstract

Using data collected in the 2017 China Household Finance Survey (CHFS), we study the impact of mobile payment on the likelihood of household entrepreneurship. In the empirical analysis, we use two-stage least squares (2SLS) regression to address the endogeneity of mobile payment. The study finds that mobile payment significantly increases the likelihood of household entrepreneurship. The mechanism could be that the mobile payment: 1) makes users more risk seeking; 2) enriches social networks; 3) provides an additional lending channel.

Suggested Citation

  • Yin, Zhichao & Gong, Xue & Guo, Peiyao & Wu, Tao, 2019. "What Drives Entrepreneurship in Digital Economy? Evidence from China," Economic Modelling, Elsevier, vol. 82(C), pages 66-73.
    • Handle: RePEc:eee:ecmode:v:82:y:2019:i:c:p:66-73
    DOI: 10.1016/j.econmod.2019.09.026
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    References listed on IDEAS

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    More about this item

    Keywords

    Mobile payment; Entrepreneurship; Risk attitude; Social network; Lending;
    All these keywords.

    JEL classification:

    • D10 - Microeconomics - - Household Behavior - - - General
    • D90 - Microeconomics - - Micro-Based Behavioral Economics - - - General
    • L19 - Industrial Organization - - Market Structure, Firm Strategy, and Market Performance - - - Other

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