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Rural E-commerce development and farmers’ digital credit behavior: Evidence from China family panel studies

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  • Gao Yu
  • Hu Xiang

Abstract

This paper examines the impact of rural e-commerce development on rural households’ digital credit behavior at the micro-level by using a multivariate Probit model and propensity score matching method with rural residents in the China Family Panel Studies (CFPS) database. Specifically, we examine the complementary or substitution relationship between digital credit and traditional bank credit and the impact of participation in e-commerce on the scale of digital credit of rural households. The empirical results show that there is a substitution relationship between digital credit and traditional bank credit. Participation in e-commerce has a positive impact on the scale of digital credit and the full scale of credit obtained by farmers, with an increase of $0.922 million and $37.49 million in the scale of digital credit and real credit received by farmers who participate in e-commerce, respectively, compared with those who do not participate in e-commerce. Further tests revealed that the difference in capital endowment was an essential reason for the disparity in the size of digital credit received among e-commerce farmers.

Suggested Citation

  • Gao Yu & Hu Xiang, 2021. "Rural E-commerce development and farmers’ digital credit behavior: Evidence from China family panel studies," PLOS ONE, Public Library of Science, vol. 16(10), pages 1-21, October.
    • Handle: RePEc:plo:pone00:0258162
    DOI: 10.1371/journal.pone.0258162
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    References listed on IDEAS

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    1. David R. Mason, 2014. "Who Gets What? Determinants Of Loan Size And Credit Rationing Among Microcredit Borrowers: Evidence From Nicaragua," Journal of International Development, John Wiley & Sons, Ltd., vol. 26(1), pages 77-90, January.
    2. Farkhanda Shamim, 2007. "The ICT environment, financial sector and economic growth: a cross‐country analysis," Journal of Economic Studies, Emerald Group Publishing Limited, vol. 34(4), pages 352-370, September.
    3. Elinor Benami & Michael R. Carter, 2021. "Can digital technologies reshape rural microfinance? Implications for savings, credit, & insurance," Applied Economic Perspectives and Policy, John Wiley & Sons, vol. 43(4), pages 1196-1220, December.
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    Cited by:

    1. Xiaoxia Li, 2022. "Research on the Development Level of Rural E-Commerce in China Based on Analytic Hierarchy and Systematic Clustering Method," Sustainability, MDPI, vol. 14(14), pages 1-18, July.
    2. Chengmin Li & Haoyu Deng & Guoxin Yu & Rong Kong & Jian Liu, 2024. "Impact Effects of Cooperative Participation on the Adoption Behavior of Green Production Technologies by Cotton Farmers and the Driving Mechanisms," Agriculture, MDPI, vol. 14(2), pages 1-25, January.

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