The Impact of Digital Technology Use on Passive Entrepreneurial Exit in Rural Households: Empirical Evidence from China

Yiran Wang, Zhijian Cai () and Jie Wang
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Yiran Wang: College of Economics and Management, Nanjing Forestry University, Nanjing 210037, China
Zhijian Cai: College of Economics and Management, Nanjing Forestry University, Nanjing 210037, China
Jie Wang: College of Economics and Management, Nanjing Forestry University, Nanjing 210037, China

Sustainability, 2022, vol. 14, issue 17, 1-18

Abstract: To reduce the passive entrepreneurial exit of rural families and improve the quality of rural entrepreneurship, we theoretically discuss how digital technology can help rural families to obtain resources in the process of entrepreneurship from a micro perspective to inhibit the passive entrepreneurial exit, and perform an empirical test by using the data of three consecutive periods of China’s household finance survey in 2015, 2017, and 2019. The results show that: First, digital technology use has a significant inhibitory effect on the passive entrepreneurial exit of rural families. Second, the role of digital technology lies in effectively improving the social capital, human capital, and financial capital of entrepreneurial families, thus inhibiting the passive entrepreneurial exit of rural families. Third, the role of digital technology is related to the development level of village social networks and county economic development levels. The average marginal effect of data technology in villages or counties with high development levels is higher. The policy implications are as follows: We should accelerate the improvement of rural digital infrastructure construction, accelerate the expansion of digital services for the people, and enhance the ability of farmers to use digital technology while increasing policy support for farmers’ entrepreneurship.

Keywords: passive entrepreneurial exit; digital technology use; social capital; human capital; financial capital (search for similar items in EconPapers)
JEL-codes: O13 Q Q0 Q2 Q3 Q5 Q56 (search for similar items in EconPapers)
Date: 2022
References: View references in EconPapers View complete reference list from CitEc
Citations: View citations in EconPapers (3)

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