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Can Mobile Payment Increase Household Income and Mitigate the Lower Income Condition Caused by Health Risks? Evidence from Rural China

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  • Weisong Qiu

    (Tailong Finance School, Zhejiang Gongshang University, Hangzhou 310018, China)

  • Tieqi Wu

    (The School of Management and Economics, Jingdezhen Ceramic University, Jingdezhen 333403, China)

  • Peng Xue

    (The Six Topographic Survey Team of Ministry of Natural Resources, Chengdu 610500, China)

Abstract

China has moved into a new stage of its fight against poverty, where the further raising of rural household income is of great importance. Health risk is one of the biggest obstacles to the poverty reduction progress. Therefore, how to cope with the negative effects of health risks has attracted the attention of scholars, especially in the background of the global outbreak of COVID-19. In this paper, we try to explore whether mobile payment, a new form of payment, can improve the income of rural households and mitigate the lower income condition caused by health risks in China. Using data from the 2017 China Household Finance Survey, we found: (1) mobile payment can substantially increase rural household income; (2) health risks will lower the income of rural residents, but mobile payment can lessen this negative effect. Mechanism analysis indicates that mobile payment is likely to ease liquidity constraints, increase social interaction, and stimulate entrepreneurship for rural households. We advised the government to promote mobile payment adoption in rural areas and enhance its design. Additionally, better medical resources should also be made available to rural households.

Suggested Citation

  • Weisong Qiu & Tieqi Wu & Peng Xue, 2022. "Can Mobile Payment Increase Household Income and Mitigate the Lower Income Condition Caused by Health Risks? Evidence from Rural China," IJERPH, MDPI, vol. 19(18), pages 1-15, September.
    • Handle: RePEc:gam:jijerp:v:19:y:2022:i:18:p:11739-:d:917546
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    1. Bingbin Wu & Linping Wang & Lin Yao, 2023. "A Mechanistic Study of the Impact of Digital Payments on Rural Household Development Resilience," Sustainability, MDPI, vol. 15(14), pages 1-20, July.
    2. Yuhua Li & Xiheng Gong & Jingyi Zhang & Ziwei Xiang & Chengjun Liao, 2022. "The Impact of Mobile Payment on Household Poverty Vulnerability: A Study Based on CHFS2017 in China," IJERPH, MDPI, vol. 19(21), pages 1-20, October.

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