Examining the Impact of Digital Finance on Farmer Consumption Inequality in China

Lang Wang, Yuping Chen () and Shijun Ding
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Lang Wang: School of Business Administration, Zhongnan University of Economics and Law, Wuhan 430073, China
Yuping Chen: School of Business Administration, Zhongnan University of Economics and Law, Wuhan 430073, China
Shijun Ding: School of Business Administration, Zhongnan University of Economics and Law, Wuhan 430073, China

Sustainability, 2022, vol. 14, issue 20, 1-16

Abstract: The development of digital finance has significantly changed farmer consumption behavior. This study used data from the China Household Finance Survey of 2015, 2017, and 2019 to examine whether digital finance can eliminate consumption inequality among farmers in China. In doing so, it provides empirical evidence for strategies for balancing social development and ensuring sustainable economic development. This study had three main findings. First, digital finance can significantly alleviate consumption inequality among farmers. Compared to basic consumption, digital finance is more effective at alleviating developmental consumption inequality. Second, digital finance can reduce consumption inequality among farmers by increasing online shopping and reducing income inequality. Third, the effect of digital finance on farmer consumption inequality is more significant in eastern China, among low-income farmers, and among farmers with primary education. These findings indicate that there is a “digital divide” and an “education threshold” in digital finance. Based on these results, this paper suggests measures for alleviating consumption inequality among farmers.

Keywords: income inequality; online shopping; digital divide; educational threshold; intermediary effect (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 (4)

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