IDEAS home Printed from https://ideas.repec.org/a/bbl/journl/v27y2024i4p33-53.html
   My bibliography  Save this article

The welfare effects of digital infrastructure: Micro-level evidence from China

Author

Listed:
  • Yuan-Qi Xie

    (Hunan Agricultural University)

  • Hui Liu

    (Hunan Agricultural University)

Abstract

Over the past 40 years of reform and opening-up, China has achieved remarkable progress in rural infrastructure development. Although some empirical studies have demonstrated a positive relationship between the provision of digital infrastructure and increases in agricultural output and farmer income in various developing countries, research exploring the impact of digital infrastructure on rural households’ welfare is rare. This gap represents a significant issue for policymakers and academic researchers in developing countries today. By matching micro-survey data with county-level digital infrastructure investment data, this paper empirically examines the effects and mechanisms of digital infrastructure on the welfare of rural households using ordered probit and mediation models. We found that digital infrastructure has a significant impact on rural households’ overall welfare levels. Mechanism testing revealed that digital infrastructure operates through at least three distinct pathways, positively affecting both the economic and non-economic welfare of rural households. Additionally, the level of human capital and regional economic development exhibit notable heterogeneous effects on the impact of digital infrastructure. The validity of the results was demonstrated through instrumental variable regression and a series of robustness tests. The reason behind this result lies in the fact that the improvement of digital infrastructure in rural areas enhances households’ ability to access resources, develop skills, and engage in decision-making processes. This objectively improves their living standards and meets their needs. The empirical findings of this study have important policy implications for strengthening rural digital infrastructure, further enhancing rural households’ digital skills, and ultimately improving their overall welfare.

Suggested Citation

  • Yuan-Qi Xie & Hui Liu, 2024. "The welfare effects of digital infrastructure: Micro-level evidence from China," E&M Economics and Management, Technical University of Liberec, Faculty of Economics, vol. 27(4), pages 33-53, December.
  • Handle: RePEc:bbl:journl:v:27:y:2024:i:4:p:33-53
    DOI: 10.15240/tul/001/2024-5-020
    as

    Download full text from publisher

    File URL: https://doi.org/10.15240/tul/001/2024-5-020
    Download Restriction: no

    File URL: https://libkey.io/10.15240/tul/001/2024-5-020?utm_source=ideas
    LibKey link: if access is restricted and if your library uses this service, LibKey will redirect you to where you can use your library subscription to access this item
    ---><---

    References listed on IDEAS

    as
    1. Shen, Mingrui & Shen, Jianfa, 2018. "Evaluating the cooperative and family farm programs in China: A rural governance perspective," Land Use Policy, Elsevier, vol. 79(C), pages 240-250.
    2. Dapeng Sun & Bintong Yu & Jun Ma, 2023. "Research on the Impact of Digital Empowerment on China’s Human Capital Accumulation and Human Capital Gap between Urban and Rural Areas," Sustainability, MDPI, vol. 15(6), pages 1-21, March.
    3. Alkire, Sabina, 2002. "Dimensions of Human Development," World Development, Elsevier, vol. 30(2), pages 181-205, February.
    4. Wei Liu & Jie Li & Linjing Ren & Jie Xu & Cong Li & Shuzhuo Li, 2020. "Exploring Livelihood Resilience and Its Impact on Livelihood Strategy in Rural China," Social Indicators Research: An International and Interdisciplinary Journal for Quality-of-Life Measurement, Springer, vol. 150(3), pages 977-998, August.
    Full references (including those not matched with items on IDEAS)

    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. Prabhir Poruthiyil, 2013. "Weaning Business Ethics from Strategic Economism: The Development Ethics Perspective," Journal of Business Ethics, Springer, vol. 116(4), pages 735-749, September.
    2. Ilaria Schnyder von Wartensee & Elizabeth Hlabse & Gabriella Berloffa & Giuseppe Folloni, 2019. "The Role of Personal Identity in Human Development," The European Journal of Development Research, Palgrave Macmillan;European Association of Development Research and Training Institutes (EADI), vol. 31(3), pages 461-479, July.
    3. Shiao-Yen Liu & Po-Chin Wu & Tsai-Yuan Huang, 2018. "Nonlinear Causality between Education and Health: the Role of Human Development Index," Applied Research in Quality of Life, Springer;International Society for Quality-of-Life Studies, vol. 13(3), pages 761-777, September.
    4. Romel Ramón González-Díaz & Ángel Acevedo-Duque & Guido Salazar-Sepúlveda & Dante Castillo, 2021. "Contributions of Subjective Well-Being and Good Living to the Contemporary Development of the Notion of Sustainable Human Development," Sustainability, MDPI, vol. 13(6), pages 1-17, March.
    5. Pinaki Das & Bibek Paria & Shama Firdaush, 2021. "Juxtaposing Consumption Poverty and Multidimensional Poverty: A Study in Indian Context," Social Indicators Research: An International and Interdisciplinary Journal for Quality-of-Life Measurement, Springer, vol. 153(2), pages 469-501, January.
    6. Ignacio C. Fernández & David Manuel-Navarrete & Robinson Torres-Salinas, 2016. "Breaking Resilient Patterns of Inequality in Santiago de Chile: Challenges to Navigate towards a More Sustainable City," Sustainability, MDPI, vol. 8(8), pages 1-19, August.
    7. Nisreen Salti & Jad Chaaban & Alexandra Irani & Rima Al Mokdad, 2021. "A Multi-Dimensional Measure of Well-being among Youth: The Case of Palestinian Refugee Youth in Lebanon," Social Indicators Research: An International and Interdisciplinary Journal for Quality-of-Life Measurement, Springer, vol. 154(1), pages 1-34, February.
    8. Leandro Prados de la Escosura, 2021. "Augmented human development in the age of globalization," Economic History Review, Economic History Society, vol. 74(4), pages 946-975, November.
    9. M. Azhar Hussain & Nikolaj Siersbæk & Lars Peter Østerdal, 2020. "Multidimensional welfare comparisons of EU member states before, during, and after the financial crisis: a dominance approach," Social Choice and Welfare, Springer;The Society for Social Choice and Welfare, vol. 55(4), pages 645-686, December.
    10. Jieying Yang & Li Yu & Jingxiang Zhang, 2024. "Impacts on Rural Community Development and Governance by Different Land Ownership: A Comparative Study Based on Two Villages in China," The European Journal of Development Research, Palgrave Macmillan;European Association of Development Research and Training Institutes (EADI), vol. 36(6), pages 1616-1635, December.
    11. Espinoza-Delgado, José & López-Laborda, Julio, 2017. "Nicaragua: evolución de la pobreza multidimensional, 2001-2009," Revista CEPAL, Naciones Unidas Comisión Económica para América Latina y el Caribe (CEPAL), April.
    12. Koen Decancq & Erik Schokkaert, 2016. "Beyond GDP: Using Equivalent Incomes to Measure Well-Being in Europe," Social Indicators Research: An International and Interdisciplinary Journal for Quality-of-Life Measurement, Springer, vol. 126(1), pages 21-55, March.
    13. Brand-Correa, Lina I. & Steinberger, Julia K., 2017. "A Framework for Decoupling Human Need Satisfaction From Energy Use," Ecological Economics, Elsevier, vol. 141(C), pages 43-52.
    14. Stefan Baumgärtner & Moritz A. Drupp & Martin F. Quaas, 2017. "Subsistence, Substitutability and Sustainability in Consumption," Environmental & Resource Economics, Springer;European Association of Environmental and Resource Economists, vol. 67(1), pages 47-66, May.
    15. Giorgio Calcagnini & Francesco Perugini, 2019. "A Well-Being Indicator for the Italian Provinces," Social Indicators Research: An International and Interdisciplinary Journal for Quality-of-Life Measurement, Springer, vol. 142(1), pages 149-177, February.
    16. Gassmann, Franziska & Siegel, Melissa & Vanore, Michaella & Waidler, Jennifer, 2012. "The impact of migration on elderly left behind in Moldova," MERIT Working Papers 2012-082, United Nations University - Maastricht Economic and Social Research Institute on Innovation and Technology (MERIT).
    17. Alecu Alexandra & Dusmanescu Dorel, 2016. "Approaches On Measuring Sustainable Development In Contemporary World – Beyond Classical Indicators," Annals - Economy Series, Constantin Brancusi University, Faculty of Economics, vol. 3, pages 40-48, June.
    18. Infante-Amate, Juan & Travieso, Emiliano & Aguilera, Eduardo, 2024. "Unsustainable prosperity? Decoupling wellbeing, economic growth, and greenhouse gas emissions over the past 150 years," World Development, Elsevier, vol. 184(C).
    19. Vanesa Jordá & Miguel Niño-Zarazúa, 2017. "Global inequality in length of life: 1950–2015," WIDER Working Paper Series 192, World Institute for Development Economic Research (UNU-WIDER).
    20. Siji Zhu & Jun Sun & Yingmei Wu & Qingping Lu & Yuechang Ke & Zhixuan Xue & Guifang Zhu & Yiting Xiao, 2024. "Vertical Spatial Differentiation and Influencing Factors of Rural Livelihood Resilience: Evidence from the Mountainous Areas of Southwest China," Agriculture, MDPI, vol. 14(8), pages 1-20, August.

    More about this item

    Keywords

    Digital transformation; rural digital economy; capability theory; household behavior; human capital;
    All these keywords.

    JEL classification:

    • D10 - Microeconomics - - Household Behavior - - - General
    • I31 - Health, Education, and Welfare - - Welfare, Well-Being, and Poverty - - - General Welfare, Well-Being

    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:bbl:journl:v:27:y:2024:i:4:p:33-53. 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: Vendula Pospisilova (email available below). General contact details of provider: https://edirc.repec.org/data/hflibcz.html .

    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.