IDEAS home Printed from https://ideas.repec.org/a/eee/finlet/v57y2023ics1544612323006475.html
   My bibliography  Save this article

Does internet use drive rural household savings? Evidence from 7825 farmer households in rural China

Author

Listed:
  • Zeng, Miao
  • Du, Jiang
  • Zhu, Xiaoyu
  • Deng, Xin

Abstract

Based on the 7825 farmer households from the 2016 China Labor Dynamic Survey Database (CLDS), this study employs the Tobit model and endogenous switching model to empirically investigate the impact of Internet use on rural household savings. This study finds that: (1) Internet use in rural areas significantly promotes rural household savings. (2) Farmers with Internet use and close to the bank, may have higher saving rates than farmers with Internet use and far from the bank. (3) Rural household savings are also closely associated with the characteristics of the household head, household members, and the geographic location of the village.

Suggested Citation

  • Zeng, Miao & Du, Jiang & Zhu, Xiaoyu & Deng, Xin, 2023. "Does internet use drive rural household savings? Evidence from 7825 farmer households in rural China," Finance Research Letters, Elsevier, vol. 57(C).
    • Handle: RePEc:eee:finlet:v:57:y:2023:i:c:s1544612323006475
    DOI: 10.1016/j.frl.2023.104275
    as

    Download full text from publisher

    File URL: http://www.sciencedirect.com/science/article/pii/S1544612323006475
    Download Restriction: Full text for ScienceDirect subscribers only
    File URL: https://libkey.io/10.1016/j.frl.2023.104275?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
    ---><---

    As the access to this document is restricted, you may want to search for a different version of it.

    References listed on IDEAS

    as
    1. repec:hal:spmain:info:hdl:2441/gaufue4me9tvqtg0t3u18e3la is not listed on IDEAS
    2. Prieger, James E., 2013. "The broadband digital divide and the economic benefits of mobile broadband for rural areas," Telecommunications Policy, Elsevier, vol. 37(6), pages 483-502.
    3. Lars-Hendrik Roller & Leonard Waverman, 2001. "Telecommunications Infrastructure and Economic Development: A Simultaneous Approach," American Economic Review, American Economic Association, vol. 91(4), pages 909-923, September.
    4. He, Jia & Qing, Chen & Guo, Shili & Zhou, Wenfeng & Deng, Xin & Xu, Dingde, 2022. "Promoting rural households' energy use for cooking: Using Internet," Technological Forecasting and Social Change, Elsevier, vol. 184(C).
    5. Franco Modigliani & Shi Larry Cao, 2004. "The Chinese Saving Puzzle and the Life-Cycle Hypothesis," Journal of Economic Literature, American Economic Association, vol. 42(1), pages 145-170, March.
    6. Zhu, Qianyu & Lyu, Zhongyao & Long, Yan & Wachenheim, Cheryl J., 2022. "Adoption of mobile banking in rural China: Impact of information dissemination channel," Socio-Economic Planning Sciences, Elsevier, vol. 83(C).
    7. Nelson Mark & Steven Lugauer & Clayton Sadler, 2012. "The Role of Household Saving in the Economic Rise of China," Working Papers 004, University of Notre Dame, Department of Economics, revised Jun 2012.
    8. Diane Whitmore, 2005. "Resource and Peer Impacts on Girls' Academic Achievement: Evidence from a Randomized Experiment," American Economic Review, American Economic Association, vol. 95(2), pages 199-203, May.
    9. Zhou, Weina, 2014. "Brothers, household financial markets and savings rate in China," Journal of Development Economics, Elsevier, vol. 111(C), pages 34-47.
    10. Nicolas Coeurdacier & Stéphane Guibaud & Keyu Jin, 2014. "Fertility Policies and Social Security Reforms in China," IMF Economic Review, Palgrave Macmillan;International Monetary Fund, vol. 62(3), pages 371-408, August.
    11. Yvonne Jie Chen & Zhiwu Chen & Shijun He, 2019. "Social Norms and Household Savings Rates in China," Review of Finance, European Finance Association, vol. 23(5), pages 961-991.
    12. Chadwick C. Curtis & Steven Lugauer & Nelson C. Mark, 2015. "Demographic Patterns and Household Saving in China," American Economic Journal: Macroeconomics, American Economic Association, vol. 7(2), pages 58-94, April.
    13. Sahoo, Pravakar & Dash, Ranjan Kumar, 2013. "Financial sector development and domestic savings in South Asia," Economic Modelling, Elsevier, vol. 33(C), pages 388-397.
    14. Wanglin Ma & R. Quentin Grafton & Alan Renwick, 2020. "Smartphone use and income growth in rural China: empirical results and policy implications," Electronic Commerce Research, Springer, vol. 20(4), pages 713-736, December.
    15. Victor Couture & Benjamin Faber & Yizhen Gu & Lizhi Liu, 2021. "Connecting the Countryside via E-Commerce: Evidence from China," American Economic Review: Insights, American Economic Association, vol. 3(1), pages 35-50, March.
    16. Marcos D. Chamon & Eswar S. Prasad, 2010. "Why Are Saving Rates of Urban Households in China Rising?," American Economic Journal: Macroeconomics, American Economic Association, vol. 2(1), pages 93-130, January.
    17. Taha Choukhmane & Nicolas Coeurdacier & Keyu Jin, 2023. "The One-Child Policy and Household Saving," Journal of the European Economic Association, European Economic Association, vol. 21(3), pages 987-1032.
    18. Shang-Jin Wei & Xiaobo Zhang, 2011. "The Competitive Saving Motive: Evidence from Rising Sex Ratios and Savings Rates in China," Journal of Political Economy, University of Chicago Press, vol. 119(3), pages 511-564.
    19. Khan, Nawab & Ray, Ram L. & Zhang, Shemei & Osabuohien, Evans & Ihtisham, Muhammad, 2022. "Influence of mobile phone and internet technology on income of rural farmers: Evidence from Khyber Pakhtunkhwa Province, Pakistan," Technology in Society, Elsevier, vol. 68(C).
    20. Chamon, Marcos & Liu, Kai & Prasad, Eswar, 2013. "Income uncertainty and household savings in China," Journal of Development Economics, Elsevier, vol. 105(C), pages 164-177.
    21. William Jack & Tavneet Suri, 2014. "Risk Sharing and Transactions Costs: Evidence from Kenya's Mobile Money Revolution," American Economic Review, American Economic Association, vol. 104(1), pages 183-223, January.
    22. Godfrey Yeung & Canfei He & Peng Zhang, 2017. "Rural banking in China: geographically accessible but still financially excluded?," Regional Studies, Taylor & Francis Journals, vol. 51(2), pages 297-312, February.
    23. Vu, Khuong M., 2011. "ICT as a source of economic growth in the information age: Empirical evidence from the 1996-2005 period," Telecommunications Policy, Elsevier, vol. 35(4), pages 357-372, May.
    24. Wen, Hong-xing & Wang, Chan & Nie, Pu-yan, 2021. "Acceleration of rural households’ conversion to cleaner cooking fuels: The importance and mechanisms of peer effects," Energy Policy, Elsevier, vol. 154(C).
    25. Muto, Megumi & Yamano, Takashi, 2009. "The Impact of Mobile Phone Coverage Expansion on Market Participation: Panel Data Evidence from Uganda," World Development, Elsevier, vol. 37(12), pages 1887-1896, December.
    26. Gabriel S Sampson & Edward D Perry, 2019. "The Role of Peer Effects in Natural Resource Appropriation – The Case of Groundwater," American Journal of Agricultural Economics, Agricultural and Applied Economics Association, vol. 101(1), pages 154-171.
    27. Lugauer, Steven & Ni, Jinlan & Yin, Zhichao, 2019. "Chinese household saving and dependent children: Theory and evidence," China Economic Review, Elsevier, vol. 57(C).
    28. Taha Choukhmane & Nicolas Coeurdacier & Keyu Jin, 2014. "The One-Child Policy and Household Savings," SciencePo Working papers hal-03460407, HAL.
    29. Noha Emara & Hicran Kasa, 2021. "The non-linear relationship between financial access and domestic savings: the case of emerging markets," Applied Economics, Taylor & Francis Journals, vol. 53(3), pages 345-363, January.
    30. Min, Shi & Liu, Min & Huang, Jikun, 2020. "Does the application of ICTs facilitate rural economic transformation in China? Empirical evidence from the use of smartphones among farmers," Journal of Asian Economics, Elsevier, vol. 70(C).
    31. Sanjaya Kumar Lenka & Rajesh Barik, 2018. "Has expansion of mobile phone and internet use spurred financial inclusion in the SAARC countries?," Financial Innovation, Springer;Southwestern University of Finance and Economics, vol. 4(1), pages 1-19, December.
    32. Zheng, Xuyuan & Lu, Haiyang, 2021. "Does ICT change household decision-making power of the left-behind women? A Case from China," Technological Forecasting and Social Change, Elsevier, vol. 166(C).
    33. repec:hal:spmain:info:hdl:2441/5e8993t1rs83t9os9ctp26bhfv is not listed on IDEAS
    34. Zhu, Xiaoke & Hu, Ruifa & Zhang, Chao & Shi, Guanming, 2021. "Does Internet use improve technical efficiency? Evidence from apple production in China," Technological Forecasting and Social Change, Elsevier, vol. 166(C).
    35. Long Yang & Haiyang Lu & Sangui Wang & Meng Li, 2021. "Mobile Internet Use and Multidimensional Poverty: Evidence from A Household Survey in Rural China," Social Indicators Research: An International and Interdisciplinary Journal for Quality-of-Life Measurement, Springer, vol. 158(3), pages 1065-1086, December.
    36. Cheung, Diana & Padieu, Ysaline, 2015. "Heterogeneity of the Effects of Health Insurance on Household Savings: Evidence from Rural China," World Development, Elsevier, vol. 66(C), pages 84-103.
    37. Ward, Michael R. & Zheng, Shilin, 2016. "Mobile telecommunications service and economic growth: Evidence from China," Telecommunications Policy, Elsevier, vol. 40(2), pages 89-101.
    38. Deng, Xin & Xu, Dingde & Zeng, Miao & Qi, Yanbin, 2019. "Does Internet use help reduce rural cropland abandonment? Evidence from China," Land Use Policy, Elsevier, vol. 89(C).
    39. Ma, Wanglin & Renwick, Alan & Nie, Peng & Tang, Jianjun & Cai, Rong, 2018. "Off-farm work, smartphone use and household income: Evidence from rural China," China Economic Review, Elsevier, vol. 52(C), pages 80-94.
    40. Wanglin Ma & Peng Nie & Pei Zhang & Alan Renwick, 2020. "Impact of Internet use on economic well‐being of rural households: Evidence from China," Review of Development Economics, Wiley Blackwell, vol. 24(2), pages 503-523, May.
    41. Boozer, Michael A. & Cacciola, Stephen E., 2001. "Inside the 'Black Box' of Project Star: Estimation of Peer Effects Using Experimental Data," Center Discussion Papers 28524, Yale University, Economic Growth Center.
    Full references (including those not matched with items on IDEAS)

    Citations

    Citations are extracted by the CitEc Project, subscribe to its RSS feed for this item.
    as


    Cited by:

    1. Xiaozeng Wang & Jiabin Chen & Xingyan Du, 2024. "Understanding the impact of Internet access on farmers' willingness to participate in farmer professional cooperatives," Agricultural Economics, Czech Academy of Agricultural Sciences, vol. 70(7), pages 349-361.

    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. Steven Lugauer & Jinlan Ni & Zhichao Yin, 2014. "Micro-Data Evidence on Family Size and Chinese Saving Rates," Working Papers 023, University of Notre Dame, Department of Economics, revised Jun 2014.
    2. Song, Zhongchen & Coupé, Tom & Reed, W. Robert, 2021. "Estimating the effect of the one-child policy on Chinese household savings - Evidence from an Oaxaca decomposition," China Economic Review, Elsevier, vol. 66(C).
    3. Curtis, Chadwick C. & Lugauer, Steven & Mark, Nelson C., 2017. "Demographics and aggregate household saving in Japan, China, and India," Journal of Macroeconomics, Elsevier, vol. 51(C), pages 175-191.
    4. Bollinger, Christopher & Ding, Xiaozhou & Lugauer, Steven, 2022. "The expansion of higher education and household saving in China," China Economic Review, Elsevier, vol. 71(C).
    5. Nawab Khan & Ram L. Ray & Hazem S. Kassem & Farhat Ullah Khan & Muhammad Ihtisham & Shemei Zhang, 2022. "Does the Adoption of Mobile Internet Technology Promote Wheat Productivity? Evidence from Rural Farmers," Sustainability, MDPI, vol. 14(13), pages 1-15, June.
    6. Can Xu & Andreas Steiner, 2022. "Does Public Employment Affect Household Saving Rates? Evidence from Chinese Household Data," CESifo Working Paper Series 9741, CESifo.
    7. Manger, Mark S. & Matthews, J. Scott, 2021. "Knowing when to splurge: Precautionary saving and Chinese-Canadians," Journal of Asian Economics, Elsevier, vol. 76(C).
    8. Jianmei Zhao & Lele Zhao, 2022. "Mobile payment adoption and the decline in China’s household savings rate," Empirical Economics, Springer, vol. 63(5), pages 2513-2537, November.
    9. Isha Chawla & Joseph Svec, 2023. "Household savings and present bias among Chinese couples: A household bargaining approach," Journal of Consumer Affairs, Wiley Blackwell, vol. 57(1), pages 648-672, January.
    10. Cubizol, Damien, 2018. "Transition and capital misallocation: the Chinese case," Journal of International Money and Finance, Elsevier, vol. 81(C), pages 88-115.
    11. Nicolas Coeurdacier & Stéphane Guibaud & Keyu Jin, 2015. "Credit Constraints and Growth in a Global Economy," American Economic Review, American Economic Association, vol. 105(9), pages 2838-2881, September.
    12. Damien Cubizol, 2017. "Transition and capital misallocation: the Chinese case," Working Papers halshs-01176919, HAL.
    13. Chang, Xiao & An, Tongliang & Tam, Pui Sun & Gu, Xinhua, 2020. "National savings rate and sectoral income distribution: An empirical look at China," China Economic Review, Elsevier, vol. 61(C).
    14. Tan, Jing & Xu, Hao & Yu, Jingwen, 2022. "The effect of homeownership on migrant household savings: Evidence from the removal of home purchase restrictions in China," Economic Modelling, Elsevier, vol. 106(C).
    15. Tani, Massimiliano & Wen, Xin & Cheng, Zhiming, 2023. "Daughters, Savings and Household Finances," IZA Discussion Papers 16440, Institute of Labor Economics (IZA).
    16. Ma, Wanglin & Zheng, Hongyun, 2021. "Impacts of Smartphone Use on Agrochemical Use Among Wheat Farmers in China: A Heterogeneous Analysis," 2021 Conference, August 17-31, 2021, Virtual 314991, International Association of Agricultural Economists.
    17. Yao, Yang, 2014. "The Chinese Growth Miracle," Handbook of Economic Growth, in: Philippe Aghion & Steven Durlauf (ed.), Handbook of Economic Growth, edition 1, volume 2, chapter 7, pages 943-1031, Elsevier.
    18. Chadwick C. Curtis & Steven Lugauer & Nelson C. Mark, 2015. "Demographic Patterns and Household Saving in China," American Economic Journal: Macroeconomics, American Economic Association, vol. 7(2), pages 58-94, April.
    19. Abhijit Banerjee & Xin Meng & Tommaso Porzio & Nancy Qian, 2014. "Aggregate Fertility and Household Savings: A General Equilibrium Analysis using Micro Data," NBER Working Papers 20050, National Bureau of Economic Research, Inc.
    20. Zhou, Weina, 2014. "Brothers, household financial markets and savings rate in China," Journal of Development Economics, Elsevier, vol. 111(C), pages 34-47.

    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:eee:finlet:v:57:y:2023:i:c:s1544612323006475. 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: Catherine Liu (email available below). General contact details of provider: http://www.elsevier.com/locate/frl .

    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.