Impact of Internet use on economic well‐being of rural households: Evidence from China

The expansion of the Internet in developing countries has important implications for the economic development of rural areas. Although many studies have investigated various benefits of Internet use, little attention has been paid to find the relationship between Internet use and the economic well‐being of rural households. This paper, therefore, investigates the effects of Internet use on household income and expenditure, using a sample of rural households from China. Both endogenous treatment regression (ETR) and unconditional quantile regression (UQR) techniques are used to identify the homogenous and heterogeneous effects of Internet use, respectively. The ETR results show that Internet use increases household income and expenditure significantly. However, the UQR results reveal that Internet use has a larger impact at the upper distributions of household income and expenditure.     

Smartphone use,off-farm employment,and women's decision-making power: Evidence from rural China

Empowering women is an important goal of the United Nations' Sustainable Development Goals, and studies have proposed various strategies to achieve this goal. However, few have examined the role of smartphone use in empowering women in decision-making and its mechanism. Therefore, this study analyzes how smartphone use affects women's decision-making power and explores whether this influence is due to women's off-farm employment mechanisms. For this purpose, the study uses the survey data of 1110 households in rural China and the endogenous treatment regression model for analysis. The control function approach addresses the selection bias of off-farm employment. The results show that smartphone use significantly increases women's decision-making power, partially channeled through increasing women's off-farm employment. The mechanism effect is robust to using both binary and intensive measurements of off-farm employment. Therefore, a policy to improve access to internet facilities and smartphone use could improve women's decision-making power through employment in the off-farm sector.     

Precautionary motivation and consumption insurance: Empirical analysis of household consumption behavior in rural China

Based on a household survey in rural China, this paper discusses parameters such as precautionary motive, excess sensitivity, consumption insurance, and inter-temporal substitution in the household consumption function in rural China. The conclusions of the paper indicate that there is a significant precautionary motive in household consumption in rural China, but the function of consumption insurance is very limited, and the consumption is also excessively sensitive to the income change. Such parameters are different among consumers within different groups. __________ Translated from Zhongguo Nongcun Jingji 中国农村经济 (Chinese Rural Economy), 2006, (4): 12–19     

Internet use and agricultural productivity in rural Vietnam

The use of the internet is growing rapidly and has become an engine for economic development. However, few studies have examined the impact of internet use on agricultural production, and the results are not yet conclusive. Employing a dataset of more than 2000 observations in rural Vietnam, our study analyses the impact of internet use on agricultural productivity using the heteroscedasticity-based instrument approach suggested by Lewbel, Journal of Business and Economic Statistics, 2012, 30, 67–80 and examines the heterogeneity and distribution of the impact using quantile regressions. Our results show that internet use has significant and positive effects on agricultural productivity. However, these effects are heterogeneous across population groups. The positive effects of internet use are stronger for households with a lower level of education, with a young and female head, and from ethnic minorities. The benefits are also found to be skewed towards the group of farmers at the bottom of the productivity distribution. Therefore, we propose facilitating the diffusion of the internet, since it not only boosts agricultural productivity, but also reduces productivity inequality. In addition, we recommend promoting rural education, supporting local markets, investing more in irrigation systems, and facilitating farm mechanisation as these factors are found to contribute to increasing agricultural productivity.     

Energy Consumption,Economic Development and Temperature in China： Evidence from PSTR Model

Since the 1980s, the Chinese economy has developed rapidly, with an av- erage annual growth rate around 10%. Energy consumption in China has greatly in- creased as well. This paper investigates the relationship between energy consumption, economic development and temperature in China by adopting provincial panel data from 1990 to 2011. Different from existing studies, in this paper, we use a panel smooth transition regression （PSTR） model to estimate the non-linearity relationship. Four different threshold variables including two lagged endogenous variables and two important exogenous variables have been considered. We find that energy intensity and the ratio of gross capital formation are suitable for the non-linearity model. The estimated elasticities of time dynamic indicate that energy consumption is income in- elastic and temperature inelastic. Elasticities of real income at first increase and then decrease, however, elasticities of temperature gradually increase after the year 1993. Last of all, we propose some policy implications.     

The impact of digital finance on household consumption: Evidence from China

Using panel data from the China Household Finance Survey (CHFS) in 2013, 2015, and 2017 and the digital inclusive finance index developed by Peking University, this study examined impacts of the digital inclusive finance on household consumption and explored its mechanisms. Results suggest that the digital inclusive finance could promote households consumption. A heterogeneity analysis showed that households with fewer assets, lower income, less financial literacy and in third- and fourth-tier cities experienced larger facilitating effects of digital finance on consumption compared to their counterparts. For consumption categories, digital finance was positively correlated with food, clothing, house maintenance, medical care, and education and entertainment expenditures. In terms of consumption structure, digital finance mainly promoted the recurring household expenditures rather than the non-recurring expenditures. Further analyses based on the mediating model found that online shopping, digital payment, obtainment of online credit, purchase of financing products on the internet and business insurance, were the main mediating variables through which digital finance affected household consumption.     

The impacts of social pension on rural household expenditure: evidence from China

In 2009, China began to implement a new social pension scheme in rural areas. We examine the impacts of this social pension on two main components of rural household expenditure, consumption and agricultural production investment. Our findings show that on average, rural households increase consumption by 1–3% and agricultural investment by as high as 6–9% in pilot counties. Further estimations reveal that the pension mainly affects the households with old-aged members and the poorer families, and that the saving rate hasn’t been changed by the pension, which support more the contingent income than the life-cycle hypothesis. We also find that among various types of expenditures, the most dramatic increases have occurred in food consumption and operational inputs on agricultural production.     

Internet usage and the income gap between self-employed individuals and employees: Evidence from China

Using longitudinal data from the China Family Panel Studies, we investigate the impact of Internet usage on the income gap between self-employed individuals and employees in China, considering the sample selection bias and individual heterogeneity issues. We divided employment statuses into three types―small entrepreneur, own-account worker, and employee. The findings reveal the following: First, the returns from Internet usage differ by employment type, which is lower for self-employed individuals than that for employees. Second, the difference in Internet usage contributes to widening the income gap, whereas the difference in the returns from Internet usage to income contributes to narrowing it. Finally, Internet usage exerts a greater impact on the income gap between employees and small entrepreneurs than that between employees and own-account workers. These empirical results suggest that the division of Internet access may exacerbate the segmentation of the formal and informal sectors in China.     

Conspicuous consumption and “race”: Evidence from South Africa

A century ago, Thorstein Veblen introduced socially contingent consumption into the economic literature. This paper complements the scarce empirical literature by testing his conjecture on South African household data and finds that Black and Coloured households spend relatively more on visible consumption than comparable White households. Following the approach of Charles et al. (2009), this paper explores whether the differences in visible expenditures can be explained with a signaling model of status seeking. Moreover, it is assessed to which extent positional concerns motivate conspicuous consumption. Although the socially contingent share in visible consumption increases with income, different incentives to consume conspicuously seem to explain that, at every level of income, Black households spend relatively more on visible consumption than comparable White households. In contrast to the findings of Charles et al. (2009) where differential spending on conspicuous consumption can be found also within each group separately, the model's core hypothesis fails to hold within the group of White South Africans.     

Precautionary saving under liquidity constraints: Evidence from rural Pakistan

This paper investigates precautionary saving under liquidity constraints in Pakistan using household panel data. In particular, while it estimates Kimball's [Kimball, M.S. Precautionary saving in the small and in the large. Econometrica 1990; 58; 53–73.] prudence parameter based on a framework that is similar to Dynan [Dynan, K.E. How prudent are consumers? Journal of Political Economy 1993; 101; 1104–1113.], this study deviates from the framework by explicitly considering liquidity constraints, as in Zeldes [Zeldes, S.P. Consumption and liquidity constraints: an empirical investigation. Journal of Political Economy 1989; 97; 305–346.]. By doing so, this paper attempts to differentiate the standard precautionary saving caused by uncertainty from that caused by liquidity constraints. Furthermore, endogenous liquidity constraints are used in order to resolve issues of selection biases. We find substantial evidence of the presence of precautionary saving in Pakistan. More specifically, the estimated prudence is significantly higher for liquidity-constrained households as compared with unconstrained ones. The finding suggests that the precautionary saving motives appear stronger when households see that their access to credit markets is limited.     

Economic diversity, development capacity and sustainable development of China

China's economic growth over the past several decades has been among the highest in the world. It has been fueled by cheap fossil fuel energy so energy consumption has risen rapidly, but there are signs that negative feedbacks in the form of waste and inefficiency may affect future development. If energy throughput exceeds the capacity of the environment to process the inevitable waste from production then the development may not be sustainable. We calculate economic diversity using an energy flow network analysis method to explore the relationships of development policy, energy use, efficiency and sustainable development. China and its provinces are presented as a case study and the development status of each province in China is presented. China's development policy does not appear to be sustainable over the period 1985–1998 because of unsustainable energy consumption trends and declining economic diversity. An energy consumption tax is proposed for increasing diversity and dealing with increasing energy consumption in China.     

The effect of the Internet on economic growth: Evidence from cross-country panel data

Using cross-country panel data, we found evidence that the Internet plays a positive and significant role in economic growth after investment ratio, government consumption ratio, and inflation were used as control variables in the growth equation.     

Gender diversity and firm performance: evidence from India and Singapore

ABSTRACT

This study investigates if gender diversity on boards is an effective driver of financial performance. For this purpose, this study choses two countries, one of which has the soft law approach (Singapore) while the other has mandatory requirements (India) on corporate boards gender diversity. By doing so, it examines if there is a comparability between the listed firms of the two countries. Our results suggest that the gender diversity has a positive and significant effect on the financial performance of the firms of both the countries. Although, the gender diversity of the two countries does not seem to affect the growth opportunities of both the countries. Further, our results indicate that the board characteristics affect the performance positively and significantly when the sample is divided into five quantiles for the firms in these two countries. These findings have implications to the managerial decision making and relevance to stewardship theory and resource dependency theory.     

互联网应用与创业绩效:社会资本的中介作用

借助社会资本理论,探究了与企业经营密切相关的互联网应用——信息获取与社交沟通如何通过社会资本积累对创业绩效产生影响。利用来自中国2432家创业企业的调研数据进行实证研究。结果显示:社会资本中的服务者联系对互联网应用的信息获取维度与创业绩效的关系起部分中介作用;社会资本中的参与者联系对互联网应用的社交沟通维度与创业绩效的关系起部分中介作用。     

Industrial Ownership and Environmental Performance: Evidence from China

This study explores the differences in pollution control performance of industries with different types of ownership – State owned (SOE), collectively or community owned (COE), and privately owned (POE). A theoretic analysis is conducted and followed by an empirical assessment with Chinese data. The empirical results show that the COEs in China have better environmental performances in water pollution discharges than the SOEs and the POEs, suggesting that COEs may internalize environmental externalities.      

Local industrial policy and productivity: Evidence from China

Subnational governments played key roles in China's past rapid growth, and local industrial policy was among their most frequently used tools. Using a plausible comprehensive local industrial policies variable constructed using local Five-Year Plans and a comprehensive dataset of all medium and large firms in China between 1998 and 2013, this paper attempts to understand whether such interventions are helpful for China's growth. Our results indicate that although local industrial policies attract more low productivity firms, they do achieve their purpose of improving the productivity of the targeted sectors, at firm and city levels, especially in the long run.     

Income, income inequality, and health: Evidence from China

This paper tests using survey data from China whether individual health is associated with income and community-level income inequality. Although poor health and high inequality are key features of many developing countries, most of the earlier literature has drawn on data from developed countries in studying the association between the two. We find that self-reported health status increases with per capita income, but at a decreasing rate. Controlling for per capita income, we find an inverted-U association between self-reported health status and income inequality, which suggests that high inequality in a community poses threats to health. We also find that high inequality increases the probability of health-compromising behavior such as smoking and alcohol consumption. Most of our findings are robust to different measures of health status and income inequality. Journal of Comparative Economics 34 (4) (2006) 668–693.     

Persistence of cities: Evidence from China

Using data from the Qing dynasty, we investigate the long‐run impact of early development on today's living standards in China. We use city‐level population density in 1776 as a measure of early economic prosperity, and examine how it is associated with today's development indicators such as the average night light density, GDP per capita, average years of schooling, and trade openness. We find that cities which were more prosperous during the Qing dynasty are now also brighter, richer, more educated, and more open.