Digital financial inclusion and vulnerability to poverty: evidence from Chinese rural households

2021 ◽  
Vol ahead-of-print (ahead-of-print) ◽  
Author(s):  
Xiuhua Wang ◽  
Yang Fu
Keyword(s):  
Poverty Reduction ◽  
Large Scale ◽  
Labour Force ◽  
Rural China ◽  
Rural Households ◽  
Household Survey ◽  
Financial Inclusion ◽  
Mediation Effect ◽  
Content Type ◽  
Vulnerability To Poverty

PurposeDigital finance has the transformative power to realise financial inclusion. However, evidence on the relationship between digital finance and poverty reduction remains limited. This study examines the mitigating effects of digital financial inclusion (DFI) on vulnerability to poverty in rural China, explores potential mechanisms at the micro-level, and investigates the external conditions for DFI to validate these effects.Design/methodology/approachRural household data from the China Labour Force Dynamics Survey and the regional DFI index compiled by Peking University are used. The probit and mediation effect models are employed to assess the impacts of the DFI on vulnerability to poverty and explore its mechanisms, with an appropriate instrumental variable to mitigate potential endogeneity.FindingsDFI can mitigate vulnerability to poverty in Chinese rural households. Specifically, both sub-indices – coverage breadth and depth of use – have a significant effect. Further analyses based on the mediation model show that improving agricultural productivity, stimulating entrepreneurial activities and promoting non-agricultural employment are the core mechanisms for alleviating poverty vulnerability. Heterogeneity analysis shows that DFI is pro-poor and benefits those who lack economic opportunities. Moreover, adequate endowment in rural households, such as production and human capital, is an external condition for digital finance to mitigate vulnerability to poverty.Originality/valueThis study is among the first to examine the vulnerability-mitigation effects from the perspective of digital finance development, relying on data from a large-scale, nationwide household survey and the regional DFI index. It also checks for the mechanisms and heterogeneity of the effects, which prove the effects can help balance efficiency and equity.

Pushed out or pulled in? Participation in non-farm activities in rural China

2017 ◽  
Vol 9 (1) ◽  
pp. 111-129 ◽  
Author(s):  
Yuanxiang Liu
Keyword(s):  
Rural China ◽  
Rural Households ◽  
Household Survey ◽  
Switching Regression ◽  
Content Type ◽  
Income Gap ◽  
Income Differential ◽  
Farm Production ◽  
Commercial Farming ◽  
The Impact

Purpose The purpose of this paper is to identify the determinants of China’s rural households’ non-farm participation. The authors pay special attention to the effect of potential income differential on this participation. Design/methodology/approach The data used in this study come from a household survey conducted in Hubei Province. The authors estimate participation equation and income equation, respectively, then introduce potential income differential simulated in participation equation to examine its effect on non-farm participation. Findings Potential income differential serves as the major pull factor that favors non-farm participation. Education, proximity to a city and specialized commercial farming are crucial in helping rural households to participate in non-farm production; while the land shortage or the labor surplus act as the push factor in non-farm participation. Better quality of land reduces the household’s propensity to participate in non-farm activities. Moreover, the income gap between households that participate in non-farm activities and pure farmers is mainly determined by the differences in household characteristics. Originality/value The authors use the method of “switching regression and structural probit” to examine the impact of potential income differential on non-farm participation, and simulate the response of the participation probability to the change of potential income differential. The authors also analyze the sources of income gap between non-farm and farm households using Oaxaca decomposition.

Employer tenure in gays, lesbians and their straight counterparts

2021 ◽  
Vol ahead-of-print (ahead-of-print) ◽  
Author(s):  
Karel Fric
Keyword(s):  
Large Scale ◽  
Labour Force ◽  
Ceteris Paribus ◽  
Market Outcomes ◽  
Main Hypothesis ◽  
Content Type ◽  
Lesbian And Gay ◽  
Occupational Characteristics ◽  
Unemployment Spells ◽  
Insight Into

PurposeThis article aims to shed more light on seemingly contradicting labour market outcomes of lesbians: they were found to have similar unemployment rates as straight women but their unemployment spells are significantly shorter. No such contradiction is observed for gays who seem to have on average a higher unemployment rate and longer unemployment spells compared to straight men.Design/methodology/approachThe main hypothesis is that lesbian and gay employees spend ceteris paribus shorter time working for a given employer (employer tenure) than comparable straight people. This hypothesis is tested on EU Labour Force Survey data using multi-level regression model.FindingsConsistently with the predictions, lesbians and gays were found to have significantly shorter employer tenure than their straight counterparts. These differences remained significant after controlling for individual, workplace and occupational characteristics. The results suggest that shorter employer tenure of lesbians and (possibly) gays is driven by labour demand factors.Originality/valueTo author's knowledge this is the first large-scale quantitative study that compares the employer tenure between lesbians, gays and comparable heterosexuals. The study provides additional insight into mechanisms that lead to (lack of) differentials in unemployment probability between these groups.

scholarly journals Do corporate sustainability practices enhance organizational economic performance?

2015 ◽  
Vol 7 (2/3) ◽  
pp. 184-200 ◽  
Author(s):  
Matjaž Maletic ◽  
Damjan Maletic ◽  
Jens Dahlgaard ◽  
Su Mi Dahlgaard-Park ◽  
Boštjan Gomišcek
Keyword(s):  
Organizational Development ◽  
Indirect Effects ◽  
Large Scale ◽  
Corporate Sustainability ◽  
Market Performance ◽  
Innovation Performance ◽  
Mediation Effect ◽  
Content Type ◽  
Mediated Effects ◽  
Sustainability Practices

Purpose – The purpose of this study is to clarify the relation between sustainability practices and financial and market performance, and also, the role of non-financial performance outputs in this relation. Corporate sustainability is a growing area of importance for organizational development. Managing sustainability practices successfully is an imperative in achieving competitive advantage. Design/methodology/approach – Using empirical data based on a large-scale survey among organizations in five countries (i.e. Germany, Poland, Serbia, Slovenia and Spain), this paper utilized mediation analysis to estimate and test the mediated effects in a multiple mediator model. As such, the sizes of indirect effects of sustainability practices on financial and market performance through potential mediators were estimated. Findings – The results showed that innovation performance exerts a mediation effect in the relation between sustainability practices and financial and market performance. The main conclusion is that a greater engagement in sustainability practices leads to an increased innovation performance, which in turn leads to financial and market performance. Originality/value – This paper is one of the first attempts to empirically validate sustainability exploitation and sustainability exploration practices. Besides, the analysis of the direct and indirect effects of sustainability exploration and sustainability exploitation practices on financial and market performance has not been yet addressed to a great extent.

scholarly journals Poverty reduction in rural China: Does the digital finance matter?

PLoS ONE ◽  
2021 ◽  
Vol 16 (12) ◽  
pp. e0261214
Author(s):  
Boou Chen ◽  
Chunkai Zhao
Keyword(s):  
Rural Areas ◽  
Poverty Reduction ◽  
Rural China ◽  
Rural Households ◽  
Research Field ◽  
Absolute Poverty ◽  
Financial Policies ◽  
Variable Approach ◽  
Reduction Effect ◽  
Financial Technology

As digital finance is widely spread and applied in China, this new format of financial technology could become a new way to reduce poverty in rural areas. By matching digital financial indexes of the prefectural-level cities with microdata on rural households from the China Household Finance Survey (CHFS) in 2017, we find that digital finance significantly suppresses absolute poverty and relative poverty among rural households in China, which is supported by a series of robustness tests, such as the instrumental variable approach, using alternative specifications, and excluding extreme observations. Additionally, we provide evidence that the poverty reduction effect of digital finance is likely to be explained by alleviating credit constraints and information constraints, broadening social networks, and promoting entrepreneurship. Our findings further complement the research field on financial poverty reduction and offer insights for the development of public financial policies of poverty reduction in other countries, especially in some developing countries.

scholarly journals Health shocks and vulnerability to poverty in Congo

2020 ◽  
Vol 7 (1) ◽  
Author(s):  
Séverin Aimé Blanchard Ouadika
Keyword(s):  
Rural Areas ◽  
Urban Areas ◽  
Poverty Reduction ◽  
Household Survey ◽  
Generalized Least Squares ◽  
Well Being ◽  
Health Shocks ◽  
Health Shock ◽  
Vulnerability To Poverty ◽  
Future Consumption

AbstractThe analysis of the link between poverty and health status in developing countries is a major focus of development policy. However, few studies, particularly in the Congo, focus on a prospective analysis of poverty and consider the variability of future consumption after a health shock. The objective of this study is to estimate vulnerability to poverty and analyse the factors that lead to a loss of well-being after a health shock in Congo. The study uses data from the 2011 Congolese Household Survey (CHS). Estimation of vulnerability to poverty and modelling of the effect of the health shock on expected future consumption are performed using the three-step feasible generalized least squares (FGLS) method. This method is also used to identify the socio-demographic determinants of vulnerability. On average, 26.8% of households are vulnerable to poverty in Congo. Health shocks accentuate this vulnerability. Households living in rural areas are more vulnerable to poverty than those in urban areas. Furthermore, household size and the level of education and marital status of the head of household have an impact on vulnerability. In view of the results obtained, poverty reduction efforts should focus on strategies to develop social safety nets and/or health insurance programmes to stabilize consumption in the event of a health shock in the household.

Does digital inclusive finance promote agricultural production for rural households in China? Research based on the Chinese family database (CFD)

2021 ◽  
Vol ahead-of-print (ahead-of-print) ◽  
Author(s):  
Yang Liu ◽  
Chunyu Liu ◽  
Mi Zhou
Keyword(s):  
Agricultural Production ◽  
Production Efficiency ◽  
Rural Households ◽  
Financial Inclusion ◽  
Mediating Effect ◽  
Chinese Family ◽  
Economic Activities ◽  
Agricultural Output ◽  
Content Type ◽  
Negative Effect

PurposeThe development of digital inclusive finance appears to be able to solve the difficulty of traditional finance, which cannot completely cover agriculture and farmers and provides better financial services and products to Chinese farmers. Thus, it improves the farmers' enthusiasm for agricultural production. The purpose of this paper is to clarify whether this goal is indeed being achieved.Design/methodology/approachThis paper theoretically analyzes the mechanism that influences the effect of digital inclusive finance on rural households' agricultural production decisions and conducts an empirical study based on a sample from the Chinese family database (CFD).FindingsFirst, the development of digital financial inclusion in general can encourage rural households to reduce agricultural production. Second, the negative effect of digital inclusive finance on households' agricultural output is realized by widening the gap between the efficiency of non-agricultural economic activities and the efficiency of agricultural production. The wider the gap is, the lower the enthusiasm of households for agricultural production. Third, the mediating effect of “digital financial inclusion – difference in efficiency – agricultural output” has a significant negative effect on households with low agricultural production efficiency, but not households with high agricultural production efficiency. Digital inclusive finance has no significant effect on the difference in efficiency between the two economic activities of high-efficiency households, but a greater difference in efficiency between the two economic activities corresponds to higher enthusiasm of households for agricultural production.Originality/valueTo the best of our knowledge, this paper is the first to analyze the impact of digital financial inclusion on Chinese farmers' agricultural production. The findings of this study can provide policy-related insights to help local governments promote the development of digital finance in China's agricultural economy.

Revisiting the measurement of financial inclusion of rural smallholder farmers in Nigeria

2021 ◽  
Vol ahead-of-print (ahead-of-print) ◽  
Author(s):  
Olayinka O. Adegbite ◽  
Charles L. Machethe ◽  
C. Leigh Anderson
Keyword(s):  
Financial Literacy ◽  
Smallholder Farmers ◽  
Household Survey ◽  
Well Being ◽  
Sampling Procedure ◽  
Financial Inclusion ◽  
Policy Recommendations ◽  
Financial Capability ◽  
Content Type ◽  
Consultative Group

PurposeThis study aims to develop and apply a multidimensional measure of financial inclusion (FI) to address measurement issues and determine the level of FI of rural smallholder farmers and the contribution of domain indicators to the level of FI in Nigeria.Design/methodology/approachThe paper adapts the Alkire–Foster method to develop a multidimensional FI index (MFII). A stratified two-stage sampling procedure is used to select 2,300 rural respondents from the 2016 Consultative Group to Assist the Poor (CGAP) Smallholder Household Survey.FindingsResults indicate that 78% of rural smallholder farmers in Nigeria are financially excluded. In addition, owning a formal account is significantly different (p < 0.00) from being financially adequate. The financial capability domain contributes the least (29.66%) to the multidimensional FI (MFI) of rural smallholder farmers relative to financial participation and financial well-being. Financial literacy, consumer protection, overcoming barriers such as high transaction costs and financial planning indicators contribute the least to FI relative to formal access.Practical implicationsResults of the study lead to policy recommendations for increasing the FI of rural smallholder farmers in Nigeria, which may be applicable to other countries.Social implicationsAchieving sustainable FI requires that interventions increase the FI of rural smallholder farmers by strengthening financial capability, participation and well-being and not only focus on formal account owners.Originality/valueThe study provides a new methodological and empirical contribution to the FI literature on rural smallholder farmers.

scholarly journals The Dual Threshold Limit of Financing and Formal Credit Availability with Chinese Rural Households: An Investigation Based on a Large Scale Survey

2018 ◽  
Vol 10 (10) ◽  
pp. 3577 ◽  
Author(s):  
Long Qin ◽  
Ruoen Ren ◽  
Qinghai Li
Keyword(s):  
Financial Institutions ◽  
Large Scale ◽  
Rural Households ◽  
Sample Selection ◽  
Household Survey ◽  
Supply Side ◽  
Credit Availability ◽  
Three Stages ◽  
Large Scale Survey ◽  
Household Survey Data

The literature on credit availability for rural households primarily focuses on the supply side, and largely ignores the demand side. This paper divided the credit process into three stages using large-scale household survey data. It also reviewed the credit process in other developing countries. A dual sample selection model was used to deal with the dual self-selection problem, which has been neglected in previous studies. This paper found that the main obstacle that farmers faced in obtaining financing was fear of applying for credit from formal financial institutions. In addition, there were significant differences in the determinants of different stages of the credit process of rural households.

The impact of trade liberalization on poverty reduction in rural China

2018 ◽  
Vol 10 (4) ◽  
pp. 683-694
Author(s):  
Jun Wang ◽  
Yong Hu
Keyword(s):  
Trade Liberalization ◽  
Survey Data ◽  
Rural Areas ◽  
Poverty Reduction ◽  
Rural China ◽  
Rural Poverty ◽  
Probit Model ◽  
Poverty Line ◽  
Content Type ◽  
The Impact

PurposeThe purpose of this paper is to investigate how trade liberalization influences rural poverty reduction in China.Design/methodology/approachThe authors make use of China Family Panel Studies survey data, take annual income of farmers of RMB2,300 and RMB3,450 as the poverty lines (poverty line 1 and poverty line 2, respectively). Residents below poverty line 1 and poverty line 2 are 2,580 and 2,661, respectively. Probit model is used to estimate the impact of trade liberalization on the poverty probability. Income-deciding equation is used to estimate the impact of trade liberalization on the income level of poor residents in rural areas. Income-deciding equation is also used to examine the transmission mechanism of trade liberalization affecting rural poverty.FindingsThis study finds that trade liberalization can reduce the poverty probability of rural residents and promote the income growth of poor residents in rural areas. Trade liberalization increases the income of poor residents and reduces poverty through transmission mechanisms such as promoting economic growth and financial expenditure.Originality/valueTo the authors’ knowledge, this is the first empirical study to quantitatively model the impact of trade liberalization on rural poverty reduction in China using residents’ survey data.

The impact of weather index insurance on agricultural technology adoption evidence from field economic experiment in China

2019 ◽  
Vol 11 (4) ◽  
pp. 622-641
Author(s):  
Yingmei Tang ◽  
Yue Yang ◽  
Jihong Ge ◽  
Jian Chen
Keyword(s):  
Technology Adoption ◽  
Field Experiment ◽  
Rural China ◽  
Rural Households ◽  
Agricultural Technology ◽  
Index Insurance ◽  
Weather Index ◽  
Content Type ◽  
Weather Index Insurance ◽  
The Impact

Purpose The purpose of this paper is to empirically investigate the impact of weather index insurance on agricultural technology adoption in rural China. Design/methodology/approach A field experiment was conducted with 344 rural households/farmers in Heilongjiang and Jiangsu Provinces, China. DID model was used to evaluate farmers’ technology adoption with and without index insurance. Findings The results show that weather index insurance has a significant effect on the technology adoption of rural households; there is a regional difference in this effect between Heilongjiang and Jiangsu. Weather index insurance promotes technology adoption of rural households in Heilongjiang, while has limited impact on those in Jiangsu. Weather, planting scale and risk preference are also important factors influencing the technology adoption of rural households. Research limitations/implications This research is subject to some limitations. First, the experimental parameters are designed according to the actual situation to simulate reality, but the willingness in the experiment does not mean it will be put into action in reality. Second, due to the diversity of China’s climate, geography and economic environment, rural households are heterogeneous in rural China. Whether the conclusion can be generalized beyond the study area is naturally questionable. A study with more diverse samples is needed to gain a fuller understanding of index insurance’s effects on farmers in China. Originality/value This research provides a rigorous empirical analysis on the impact of weather index insurance on farmers’ agricultural technology adoption through a carefully designed field experiment.

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