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The Mediating Role of Social Capital in Digital Information Technology Poverty Reduction an Empirical Study in Urban and Rural China

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  • Zhen Liu

    (School of Business, Nanjing Normal University, No. 1 Wenyuan Road, Nanjing 210023, China)

  • Yiming Wei

    (School of Business, Nanjing Normal University, No. 1 Wenyuan Road, Nanjing 210023, China)

  • Qiuming Li

    (School of Business, Nanjing Normal University, No. 1 Wenyuan Road, Nanjing 210023, China)

  • Jing Lan

    (College of Public Administration, Nanjing Agricultural University, No. 1 Weigang, Nanjing 210095, China)

Abstract

Widespread use of digital information technology is having a significant impact on economic growth and people’s well-being. This paper assesses the mediating role of social capital in the impact of digital information technology on multidimensional poverty. Due to differences in regional, industrial structure and other factors, digital information technology has different impacts on urban and rural residents. In this paper, the China Family Panel Studies (CFPS) database is used for data, and a mediating effect model is used to study the problem. The digital information technology use was found to enhance social capital from social network, social participation and social trust, and subsequently alleviates multidimensional poverty. The results indicate that social trust plays a more significant mediating role than social capital and social participation on the impact of digital information technology on multidimensional poverty. Furthermore, the results reveal that the use of digital information technology has varying effects on poverty reduction among different income groups, with a much higher effect on low-income groups. However, the mediating effect of social capital in high-income groups is higher than that in low-income groups. In particular, social capital in the top 25% of income groups has the highest mediating effect. In the heterogeneity analysis between urban and rural areas, it is found that the multidimensional poverty situation in urban areas is significantly better than that in rural areas, because urban residents have a higher use of digital information, and at the same time, the quality of social capital in urban and rural groups is different, leading to the difference in the effect of digital information technology on poverty reduction of multidimensional poverty. Based on the results of the study, we believe that the use of digital information technology has actually improved the multi-dimensional poverty status of all groups, and social capital plays a key mediating role in it. Relying on the progress of digital information technology, we can build more convenient social network. Establish more adequate channels of information communication, enhance social trust and social participation, and alleviate multidimensional poverty.

Suggested Citation

  • Zhen Liu & Yiming Wei & Qiuming Li & Jing Lan, 2021. "The Mediating Role of Social Capital in Digital Information Technology Poverty Reduction an Empirical Study in Urban and Rural China," Land, MDPI, vol. 10(6), pages 1-21, June.
    • Handle: RePEc:gam:jlands:v:10:y:2021:i:6:p:634-:d:574959
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    2. Zhi Fang & Li Huang & Huan Zhang, 2023. "Analyzing the Impact of Geographic Environment Differences on the Dual Backwardness of Rural Economy and Information in the Perspective of Digital Poverty," Sustainability, MDPI, vol. 15(5), pages 1-11, February.
    3. Xiaohan Li & Yang Lv & Md Nazirul Islam Sarker & Xun Zeng, 2022. "Assessment of Critical Diffusion Factors of Public–Private Partnership and Social Policy: Evidence from Mainland Prefecture-Level Cities in China," Land, MDPI, vol. 11(3), pages 1-15, February.
    4. Xiaowen Dai & Yi Chen & Chunyan Zhang & Yanqiu He & Jiajia Li, 2023. "Technological Revolution in the Field: Green Development of Chinese Agriculture Driven by Digital Information Technology (DIT)," Agriculture, MDPI, vol. 13(1), pages 1-18, January.
    5. Maria-Daniela TUDORACHE, 2022. "Poverty in Romania: an analysis at regional level," Theoretical and Applied Economics, Asociatia Generala a Economistilor din Romania / Editura Economica, vol. 0(2(631), S), pages 81-88, Summer.
    6. Kaijian Li & Ruopeng Huang & Guiwen Liu & Asheem Shrestha & Xinyue Fu, 2022. "Social Capital in Neighbourhood Renewal: A Holistic and State of the Art Literature Review," Land, MDPI, vol. 11(8), pages 1-27, July.
    7. Xian Liang & Hui Xiao & Fangmiao Hou & Xuan Guo & Lishan Li & Longjunjiang Huang, 2024. "Breaking the chains of poverty: examining the influence of smartphone usage on multidimensional poverty in rural settings," Palgrave Communications, Palgrave Macmillan, vol. 11(1), pages 1-17, December.
    8. Shunran Wang & Fangping Rao & Xianlei Ma & Xiaoping Shi, 2022. "Farmland Dispute Prevention: The Role of Land Titling, Social Capital and Household Capability," Land, MDPI, vol. 11(10), pages 1-14, October.

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