IDEAS home Printed from https://ideas.repec.org/a/gam/jsusta/v15y2023i14p11203-d1196837.html
   My bibliography  Save this article

A Mechanistic Study of the Impact of Digital Payments on Rural Household Development Resilience

Author

Listed:
  • Bingbin Wu

    (College of Economics and Management FAFU, Fujian Agriculture and Forestry University, Fuzhou 350002, China)

  • Linping Wang

    (College of Economics and Management FAFU, Fujian Agriculture and Forestry University, Fuzhou 350002, China)

  • Lin Yao

    (School of Marxism, Fujian Agriculture and Forestry University, Fuzhou 350002, China)

Abstract

China has made advancements in the achievement of the poverty relief goal set by the 2030 Agenda for Sustainable Development of the United Nations. However, the rapidly changing socioeconomic environment and the increasingly growing complication of poverty in rural households make it necessary to enhance rural household development resilience to ensure poverty alleviation. With the rapid development of Internet technology, this paper assesses whether digital payments influence rural household development resilience. Based on it, this study takes rural China as its research area, selects samples of farmers’ household registration as its research object, uses the data recorded by China Household Finance Survey (CHFS) in 2015, 2017, and 2019, and constructs the index of “rural household development resilience” based on the family wellbeing model to empirically test the impact of rural households using mobile payments on development resilience. By considering the nonlinear dynamics of event development, this paper addresses the short-term effects of the previous exclusive examination of digital payments, providing a theoretical basis for future research on the relationship between digital payments and development resilience. The results show the following: (1) digital payments can significantly enhance rural household development resilience; (2) relaxing liquidity constraints and promoting farmer-oriented market participation are the primary mechanisms by which digital payments affect rural household development resilience, but digital payments do not have an impact on rural household development resilience by releasing credit constraints; and (3) the heterogeneity regression analysis showed that the promotion effect of digital payments on rural household development resilience is the strongest in the Western areas, at medium level in the Central areas, and the weakest in the Eastern areas. Thus, the influence of digital payments is not significant to rural household development resilience. Based on the conclusions mentioned above, this article proposes countermeasures and suggestions.

Suggested Citation

  • Bingbin Wu & Linping Wang & Lin Yao, 2023. "A Mechanistic Study of the Impact of Digital Payments on Rural Household Development Resilience," Sustainability, MDPI, vol. 15(14), pages 1-20, July.
    • Handle: RePEc:gam:jsusta:v:15:y:2023:i:14:p:11203-:d:1196837
    as

    Download full text from publisher

    File URL: https://www.mdpi.com/2071-1050/15/14/11203/pdf
    Download Restriction: no
    File URL: https://www.mdpi.com/2071-1050/15/14/11203/
    Download Restriction: no
    ---><---

    References listed on IDEAS

    as
    1. Suri, Tavneet & Bharadwaj, Prashant & Jack, William, 2021. "Fintech and household resilience to shocks: Evidence from digital loans in Kenya," Journal of Development Economics, Elsevier, vol. 153(C).
    2. Leclerc, France & Schmitt, Bernd H & Dube, Laurette, 1995. "Waiting Time and Decision Making: Is Time like Money?," Journal of Consumer Research, Journal of Consumer Research Inc., vol. 22(1), pages 110-119, June.
    3. Carolyn Kousky & Helen Wiley & Len Shabman, 2021. "Can Parametric Microinsurance Improve the Financial Resilience of Low-Income Households in the United States?," Economics of Disasters and Climate Change, Springer, vol. 5(3), pages 301-327, October.
    4. Weisong Qiu & Tieqi Wu & Peng Xue, 2022. "Can Mobile Payment Increase Household Income and Mitigate the Lower Income Condition Caused by Health Risks? Evidence from Rural China," IJERPH, MDPI, vol. 19(18), pages 1-15, September.
    5. Feinberg, Richard A, 1986. "Credit Cards as Spending Facilitating Stimuli: A Conditioning Interpretation," Journal of Consumer Research, Journal of Consumer Research Inc., vol. 13(3), pages 348-356, December.
    6. Zewdie Birhanu & Argaw Ambelu & Negalign Berhanu & Abraraw Tesfaye & Kifle Woldemichael, 2017. "Understanding Resilience Dimensions and Adaptive Strategies to the Impact of Recurrent Droughts in Borana Zone, Oromia Region, Ethiopia: A Grounded Theory Approach," IJERPH, MDPI, vol. 14(2), pages 1-18, January.
    7. 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.
    8. Soman, Dilip, 2001. "Effects of Payment Mechanism on Spending Behavior: The Role of Rehearsal and Immediacy of Payments," Journal of Consumer Research, Journal of Consumer Research Inc., vol. 27(4), pages 460-474, March.
    9. Erik Brynjolfsson & Yu (Jeffrey) Hu & Duncan Simester, 2011. "Goodbye Pareto Principle, Hello Long Tail: The Effect of Search Costs on the Concentration of Product Sales," Management Science, INFORMS, vol. 57(8), pages 1373-1386, August.
    10. 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.
    11. Promothesh Chatterjee & Randall L. Rose, 2012. "Do Payment Mechanisms Change the Way Consumers Perceive Products?," Journal of Consumer Research, Journal of Consumer Research Inc., vol. 38(6), pages 1129-1139.
    12. Visser, Martine & Jumare, Hafsah & Brick, Kerri, 2020. "Risk preferences and poverty traps in the uptake of credit and insurance amongst small-scale farmers in South Africa," Journal of Economic Behavior & Organization, Elsevier, vol. 180(C), pages 826-836.
    13. William Jack & Tavneet Suri, 2014. "Risk Sharing and Transactions Costs: Evidence from Kenya's Mobile Money Revolution," American Economic Review, American Economic Association, vol. 104(1), pages 183-223, January.
    14. Baydas, Mayada M. & Meyer, Richard L. & Aguilera-Alfred, Nelson, 1994. "Discrimination against women in formal credit markets: Reality or rhetoric?," World Development, Elsevier, vol. 22(7), pages 1073-1082, July.
    15. Munyegera, Ggombe Kasim & Matsumoto, Tomoya, 2016. "Mobile Money, Remittances, and Household Welfare: Panel Evidence from Rural Uganda," World Development, Elsevier, vol. 79(C), pages 127-137.
    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. Yang, Yaofeng & Jiang, Mingchun & Li, Xiuqing & Chen, Yajuan, 2024. "Energy poverty and household development resilience: Household level evidence from China," Energy, Elsevier, vol. 309(C).
    2. Verma, Rahul & Chatterjee, Devlina, 2025. "Relative impact of digital and traditional financial inclusion on financial resilience: Evidence from 13 emerging countries," Journal of Economics and Business, Elsevier, vol. 133(C).

    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. Bo Yang & Xiangnan Wang & Tong Wu & Weihua Deng, 2023. "Reducing farmers' poverty vulnerability in China: The role of digital financial inclusion," Review of Development Economics, Wiley Blackwell, vol. 27(3), pages 1445-1480, August.
    2. Yizhao Jiang, 2022. "The Influence of Payment Method: Do Consumers Pay More with Mobile Payment?," Papers 2210.14631, arXiv.org.
    3. Weisong Qiu & Tieqi Wu & Peng Xue, 2022. "Can Mobile Payment Increase Household Income and Mitigate the Lower Income Condition Caused by Health Risks? Evidence from Rural China," IJERPH, MDPI, vol. 19(18), pages 1-15, September.
    4. 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.
    5. Arouna Kouandou & Sophie Legras, 2025. "Welfare Impacts of Mobile Banking Use in Rural Africa: Gender Disaggregated Evidence from Eight Sub-Saharan African Countries," The European Journal of Development Research, Palgrave Macmillan;European Association of Development Research and Training Institutes (EADI), vol. 37(4), pages 812-838, August.
    6. Yang, Bo & Ma, Fang & Deng, Weihua & Pi, Yang, 2022. "Digital inclusive finance and rural household subsistence consumption in China," Economic Analysis and Policy, Elsevier, vol. 76(C), pages 627-642.
    7. Sarofim, Samer & Chatterjee, Promothesh & Rose, Randall, 2020. "When store credit cards hurt retailers: The differential effect of paying credit card dues on consumers' purchasing behavior," Journal of Business Research, Elsevier, vol. 107(C), pages 290-301.
    8. Arvind Agrawal & James W. Gentry, 2020. "Why do many consumers prefer to pay now when they could pay later?," Journal of Consumer Affairs, Wiley Blackwell, vol. 54(2), pages 607-627, June.
    9. Brett Theodos & Christina Plerhoples Stacy & Devlin Hanson & Julian Jamison & Rebecca Daniels, 2020. "Do not swipe the small stuff: A randomized evaluation of rules of thumb‐based financial education," Journal of Consumer Affairs, Wiley Blackwell, vol. 54(2), pages 701-722, June.
    10. Zha, Yong & Wang, Yuting & Li, Quan & Yao, Wenying, 2022. "Credit offering strategy and dynamic pricing in the presence of consumer strategic behavior," European Journal of Operational Research, Elsevier, vol. 303(2), pages 753-766.
    11. Gregory Mvogo & Christèle Gladisse Awounang Djouaka, 2022. "Effet du mobile money sur la résilience des ménages exerçant des activités génératrices de revenus au Cameroun," African Development Review, African Development Bank, vol. 34(4), pages 459-471, December.
    12. Ablam Estel Apeti, 2022. "Household welfare in the digital age: Assessing the effect of mobile money on household consumption volatility in developing countries," Post-Print hal-03819779, HAL.
    13. Fatima, Shumaila & Chakraborty, Madhumita, 2025. "Does mobile phone proficiency contribute to stock market participation? The role of payment convenience, liquidity, and social interaction," Economic Modelling, Elsevier, vol. 144(C).
    14. Yao, Becatien & Shanoyan, Aleksan & Schwab, Ben & Amanor-Boadu, Vincent, 2023. "The role of mobile money in household resilience: Evidence from Kenya," World Development, Elsevier, vol. 165(C).
    15. Constantin Johnen & Oliver Mußhoff, 2023. "Digital credit and the gender gap in financial inclusion: Empirical evidence from Kenya," Journal of International Development, John Wiley & Sons, Ltd., vol. 35(2), pages 272-295, March.
    16. Wang, Qi & Liu, Ming & Xie, Kai, 2025. "Disappearing bank Branches: Evidence from China household finance survey," International Review of Economics & Finance, Elsevier, vol. 98(C).
    17. Ma, Qingguo & He, Yijin & Tan, Yulin & Cheng, Lu & Wang, Manlin, 2024. "Unveiling the Impact of Payment Methods on Consumer Behavior: Insights and Future Directions," OSF Preprints 3fphk, Center for Open Science.
    18. repec:osf:osfxxx:3fphk_v1 is not listed on IDEAS
    19. Luqiong Tong & Yuhuang Zheng & Ping Zhao, 2013. "Is money really the root of all evil? The impact of priming money on consumer choice," Marketing Letters, Springer, vol. 24(2), pages 119-129, June.
    20. Jana S. Hamdan & Tim Kaiser & Lukas Menkhoff & Yuanwei Xu, 2024. "Scaling Financial Education Among Micro-Entrepreneurs: A Randomized Saturation Experiment," CESifo Working Paper Series 11431, CESifo.
    21. Nayyar, Gaurav & Pleninger, Regina & Vorisek, Dana & Yu, Shu, 2024. "Digitalization and Inclusive Growth : A Review of the Evidence," Policy Research Working Paper Series 10941, The World Bank.

    More about this item

    Keywords

    ;
    ;
    ;

    Statistics

    Access and download statistics

    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:15:y:2023:i:14:p:11203-:d:1196837. 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.