Dataset Information

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

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.

SUBMITTER: Yu G

PROVIDER: S-EPMC8519481 | biostudies-literature | 2021

REPOSITORIES: biostudies-literature

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

Yu Gao G Xiang Hu H

PloS one 20211015 10

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 em ...[more]

PMID: 34653212

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Project description:In recent decades, microfinance institutions with financial products designed for low income groups have been established all over the world. However, credit access for farmers in developing countries remains low. Digital financial services are rapidly expanding globally at the moment. They also bear great potential to address the credit needs of farmers in remote rural areas. Beyond mobile money services, digital credit is successively offered and also discussed in literature. Compared to conventional credit which is granted based on a thorough assessment of the loan applicant's financial situation, digital credit is granted based on an automated analysis of the existing data of the loan applicant. Despite the potential of digital credit for serving the credit needs of rural farmers, empirical research on farmers' willingness to pay for digital credit is non-existent. We employ a discrete choice experiment to compare farmers' willingness to pay for digital and conventional credit. We apply loan attributes which reflect typical characteristics of both credit products. Our results indicate a higher willingness to pay for digital credit compared to conventional credit. Furthermore, we find that the proximity to withdraw borrowed money has a higher effect on farmers' willingness to pay for digital credit compared to conventional credit. Furthermore, our results show that instalment repayment condition reduces farmers' willingness to pay for digital credit whilst increasing their willingness to pay for conventional credit. Additionally, we find that longer loan duration has a higher effect on farmers' willingness to pay for digital credit compared to conventional credit whereas higher additional credit cost has a lower effect on farmers' willingness to pay for conventional credit compared to digital credit. Our results highlight the potential of digital credit for agricultural finance in rural areas of Madagascar if a certain level of innovation is applied in designing digital credit products.

Project description:BackgroundIn 2017, China launched a comprehensive reform of public hospitals and eliminated drug markups, aiming to solve the problem of expensive medical treatment and allow poor and low-income people to enjoy basic health opportunities. This study attempts to evaluate the policy impact of public hospital reform on the health inequality of Chinese residents and analyze its micro-level mechanism from the perspective of household consumption structure. Studying the inherent causal connection between public hospital reform and health inequality is of paramount significance for strengthening China's healthcare policies, system design, raising the average health level of Chinese residents, and achieving the goal of ensuring a healthy life for individuals of all age groups.MethodsBased on the five waves of data from the China Family Panel Studies (CFPS) conducted in 2012-2020, We incorporates macro-level statistical indicators such as the time of public hospital reforms, health insurance surplus, and aging, generating 121,447 unbalanced panel data covering 27 provinces in China for five periods. This data was used to explore the impact of public hospital reform on health inequality. Logical and empirical tests were conducted to determine whether the reform, by altering family medical care and healthy leisure consumption expenditures, affects the micro-pathways of health inequality improvement. We constructed a two-way fixed model based on the re-centralized influence function (RIF_CI_OLS) and a chained mediation effects model to verify the hypotheses mentioned above.ResultsPublic hospital reform can effectively improve the health inequality situation among Chinese residents. The reform significantly reduces household medical expenses, increases healthy leisure consumption, promotes the upgrading of family health consumption structure, and lowers the health inequality index. In terms of indirect effects, the contribution of the increase in healthy leisure consumption is relatively greater.ConclusionPublic hospital reform significantly alleviates health inequality in China, with household health consumption serving as an effective intermediary pathway in the aforementioned impact. In the dual context of global digitization and exacerbated population aging, enhancing higher education levels and vigorously developing the health industry may be two key factors contributing to this effect.

Dataset Information

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

Publications

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

Similar Datasets

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