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Examining the Impact of Digital Finance on Farmer Consumption Inequality in China

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  • Lang Wang

    (School of Business Administration, Zhongnan University of Economics and Law, Wuhan 430073, China)

  • Yuping Chen

    (School of Business Administration, Zhongnan University of Economics and Law, Wuhan 430073, China)

  • Shijun Ding

    (School of Business Administration, Zhongnan University of Economics and Law, Wuhan 430073, China)

Abstract

The development of digital finance has significantly changed farmer consumption behavior. This study used data from the China Household Finance Survey of 2015, 2017, and 2019 to examine whether digital finance can eliminate consumption inequality among farmers in China. In doing so, it provides empirical evidence for strategies for balancing social development and ensuring sustainable economic development. This study had three main findings. First, digital finance can significantly alleviate consumption inequality among farmers. Compared to basic consumption, digital finance is more effective at alleviating developmental consumption inequality. Second, digital finance can reduce consumption inequality among farmers by increasing online shopping and reducing income inequality. Third, the effect of digital finance on farmer consumption inequality is more significant in eastern China, among low-income farmers, and among farmers with primary education. These findings indicate that there is a “digital divide” and an “education threshold” in digital finance. Based on these results, this paper suggests measures for alleviating consumption inequality among farmers.

Suggested Citation

  • Lang Wang & Yuping Chen & Shijun Ding, 2022. "Examining the Impact of Digital Finance on Farmer Consumption Inequality in China," Sustainability, MDPI, vol. 14(20), pages 1-16, October.
    • Handle: RePEc:gam:jsusta:v:14:y:2022:i:20:p:13575-:d:948274
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    References listed on IDEAS

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    5. Naishu Yu & Yanzhe Wang, 2021. "Can Digital Inclusive Finance Narrow the Chinese Urban–Rural Income Gap? The Perspective of the Regional Urban–Rural Income Structure," Sustainability, MDPI, vol. 13(11), pages 1-18, June.
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    Cited by:

    1. Dongjing Chen & Xiaotong Guo, 2023. "Impact of the Digital Economy and Financial Development on Residents’ Consumption Upgrading: Evidence from Mainland China," Sustainability, MDPI, vol. 15(10), pages 1-25, May.
    2. Liu, Nian & Qian, Yihe & Gu, Xinhua & Li, Guoqiang, 2024. "Digital technology, e-commerce, and economic inequality: The case of China," International Review of Economics & Finance, Elsevier, vol. 91(C), pages 259-271.
    3. Yang, Yang & Lin, Zibo & Xu, Zhaoyi & Liu, Shuwen, 2024. "The impact of digital finance on regional economic resilience," Pacific-Basin Finance Journal, Elsevier, vol. 85(C).
    4. Qianqian Li & Qilin Liu, 2023. "Impact of Digital Financial Inclusion on Residents’ Income and Income Structure," Sustainability, MDPI, vol. 15(3), pages 1-20, January.

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