Purpose The primary contradiction in the urban–rural digital divide is shifting from a focus on hardware facilities to a gap in software literacy. Strengthening the digital capabilities of farmers is vital. This study aims to investigate the impact of the relationship between digital capabilities and entrepreneurial resilience, as well as its underlying mechanisms. Design/methodology/approach Structural equation modeling with bootstrapping estimation was utilized to assess the causal relationship between digital capabilities and entrepreneurial resilience, using a sample of 542 respondents from rural areas in China. Findings The results show that digital capabilities have a significant positive effect on entrepreneurial resilience. Network embeddedness and resource bricolage both play partially mediating roles in the effect of digital capabilities on entrepreneurial resilience. Digital capabilities enhance entrepreneurial resilience through the serial mediation of network embeddedness and resource bricolage. The analysis shows no significant generational differences in the model. Originality/value First, this study introduces digital capabilities into the formation mechanism of entrepreneurial resilience, which provides a new perspective for studying the antecedents of entrepreneurial resilience. Second, this study explores the mediating effects of network embeddedness and resource bricolage on the relationship between digital capabilities and entrepreneurial resilience, which further interprets the driving mechanism of digital capabilities on entrepreneurial resilience among farmer entrepreneurs. Third, this study introduces comparative research of farmers from different generational groups to explain how digital capabilities affect entrepreneurial resilience.
Purpose This study aims to examine the impact of farmland titling on alleviating rural income-oriented relative poverty, drawing upon Coase's theory on the consistency of factor allocation and income distribution. Specifically, it seeks to ascertain whether farmland property rights empower farmers by influencing factor allocation and income structure. Design/methodology/approach We conduct an empirical analysis using data obtained from a random sample of in-person interviews with farmers in nine Chinese provinces. To address endogeneity and dummy instrumental variables, we use the conditional mixed process method and endogenous switching probit model. Multiple mediation effect models are utilized to explore the impact mechanisms of farmland titling on rural income-oriented relative poverty. Findings Our results indicate that farmland titling significantly reduces income-oriented relative poverty in rural areas by facilitating factor flow and optimizing income structure. Notably, we observe that farmland titling leads to labor force (temporary migration) and farmland reallocation, subsequently, increasing the wage income proportion and decreasing agricultural income proportion. However, it does not significantly affect farmers' business income proportion or farmland rent income proportion. Overall, findings highlight farmland titling's role in reducing income-oriented relative poverty, emphasize strengthening farmland reforms to advance equitable development and common prosperity in rural developing countries. Originality/value This paper offers three distinct contributions. First, it advances Coase's theory on the consistency of factor allocation and income distribution to rural contexts, addressing prior neglect of its application to relative poverty. Second, it clarifies farmland's role in rural relative poverty via a multi-layered mechanism in a synthetic perspective, unlike existing focus on absolute poverty or single factors. Third, it proposes targeted farmland system reform policies to reduce rural relative poverty, moving beyond generic recommendations in prior literature.
Purpose This article aims to empirically examine the alterations in the Sino-US agricultural trade pattern under the imposition of substantial tariffs, with a particular focus on the US “reciprocal tariffs.” Design/methodology/approach This article initially employs the value chain approach to analyze the dynamic shifts of Sino-US agricultural trade pattern since the 2018 Sino-US trade conflict. Subsequently, we utilize the Global Trade Analysis Project model to assess the impacts of the US “reciprocal tariffs” on China's agricultural trade. Findings Since 2018, the agricultural value chain between China and the United States has experienced accelerated restructuring, resulting in a decreased reliance of China's agricultural value chain on the United States. The US “reciprocal tariffs” are expected to exert only a limited impact on China's bulk agricultural commodities. The imposition of “reciprocal tariffs” and nontariff barriers by the United States will disrupt the global agricultural supply chain, elevate trade costs, affect Chinese agricultural production and market stability, and pose a threat to both China's and global food security. Practical implications The stability of agricultural trade and supply chains is of paramount importance for ensuring food security both in China and on a global scale. The US pursuit of deglobalization has inflicted systemic harm on food supply and value chains, affecting China and the world at large. Social implications The analysis presented in this article will assist policymakers in China and other nations in formulating strategies and implementing measures to engage in global food security governance. Originality/value Based on a novel and timely empirical analysis, this article offers policy implications for safeguarding agricultural and food security in China and globally.
Purpose Hybrid choice models (HCM) incorporate latent psychosocial variables into choice modeling, offering a deeper understanding of consumer preferences. Unlike alternative two-step methods, HCMs estimate latent factor scores, representing psychosocial beliefs, along with preference parameters simultaneously. However, existing HCMs often overlook scale and preference heterogeneity, limiting their ability to capture the full complexity of consumer decision-making. This article introduces a Bayesian Hybrid Generalized Multinomial Logit (BHGMNL) model that addresses these gaps by simultaneously incorporating latent factors and accounting for both scale and preference heterogeneity. Design/methodology/approach The model is applied to consumer preference data for single-use eating-ware products, revealing its ability to capture behavioral insights. Findings The findings demonstrate that the BHGMNL model is a robust and flexible framework that offers significant advances in consumer choice modeling. Originality/value We proposed a new method, which helps with the choice experiment data.
Purpose Existing literature suggests that agricultural fiscal expenditure narrows the urban-rural income gap by promoting agriculture-biased growth. This paper aims to reveal that non-agricultural growth also serves as a mechanism through which such expenditure narrows the gap. Furthermore, it seeks to explore a pathway of agricultural fiscal policies that narrows the gap more effectively by balancing the mechanisms of growth in both sectors.Design/methodology/approach This paper first builds a conceptual framework that reveals mechanisms of agricultural and non-agricultural growth through which agricultural fiscal expenditure impacts the urban-rural income gap. The framework distinguishes between two components of agricultural fiscal expenditure: agricultural producer subsidies, biased toward agricultural growth and general rural support, promoting both agricultural and non-agricultural growth. Second, using China's provincial panel data, we employ a two-way fixed effects model to estimate the effects of agricultural fiscal expenditure on growth in each sector, and subsequently, how these growth effects influence the gap. We also estimate the heterogeneity of these effects when the structure of agricultural fiscal expenditure changes.Findings This paper finds that a one-percentage-point increase in the share of agricultural fiscal expenditure over total fiscal expenditure raises China's agricultural labor productivity and number of rural residents employed in non-agricultural sector by 0.010% and 0.016%, respectively. Growth in agricultural labor productivity and number of rural residents employed in non-agricultural sector further narrows the urban-rural income gap. Agricultural producer subsidies only promote the growth in agricultural sector, whereas general rural support stimulates the growth in both sectors. Increasing the ratio of general rural support over agricultural producer subsidies narrows the gap more effectively.Originality/value First, while literature emphasizes that agricultural fiscal expenditure narrows China's urban-rural income gap through its pro-growth effect on agriculture, this paper presents novel evidence that its pro-growth effect on non-agricultural sector also narrows the gap. It thus enhances the understanding of how agricultural fiscal expenditure reduces China's urban-rural income gap. Second, while literature focuses on narrowing the gap by increasing agricultural fiscal expenditure share, this paper argues that increasing the share of general rural support within total agricultural fiscal expenditure can promote both agricultural and non-agricultural growth more effectively, thereby leading to a larger reduction in the urban-rural income gap. This suggests that further raising the general rural support share can more effectively narrow the urban-rural income gap.
Purpose We examine whether profit insurance can stabilize China's hog market, particularly its effects on hog prices and farmers' profit. Our objective is to assess how profit insurance contributes to stability in agricultural risk management. Design/methodology/approach Based on the average profit of hog farmers, we designed an insurance policy. Using historical monthly data from China's hog market, the analysis applies the cobweb model and a simultaneous-equation model to conduct simulations and assess the influence of profit insurance on hog prices and farmers' profit. Additionally, chaotic analysis is applied to evaluate the macro-level stabilizing effect of profit insurance. Findings The results show that profit insurance reduces the largest Lyapunov exponent (LLE) of hog prices and farmers' profit, indicating lower sensitivity of price and profit dynamics to small disturbances. The stabilizing effect on farmers' profit strengthens with higher levels of premium subsidy but diminishes when fully subsidized. Research limitations/implications The study is limited to China's hog industry and aggregate profit data. Future research could expand the framework to other agricultural sectors, different insurance designs or cross-country comparisons. Practical implications Premium subsidies can enhance the stabilizing effect of profit insurance, whereas fully subsidized premiums do not, offering insights for alleviating farmers' production uncertainty in volatile markets. Originality/value We combine the cobweb model and chaotic analysis to evaluate macro-level stabilization effects of profit insurance, contributing to both academic research on agricultural risk management and policy discussions on the effectiveness of insurance-based interventions.
Purpose China's comprehensive straw utilization efforts represent a pivotal step toward developing a more flexible renewable energy industry system. This study aims to explore the impact of comprehensive straw utilization on agricultural green development efficiency.Design/methodology/approach With data sourced from network databases and processed via Python, this study employs a panel data model, a spatial regressive model, and Multi-scale Geographically Weighted Regression to analyze the panel data of 85 prefecture-level cities in the Yangtze River Economic Belt from 2009-2021.Findings The empirical results show that comprehensive straw utilization significantly improves agricultural green development efficiency from the perspective of industrial agglomeration. This improvement is achieved through four key mechanisms: promoting technological innovation, enhancing labor efficiency, increasing output value-added, and realizing significant green emission reductions. Spatial effect analysis indicated that comprehensive straw utilization not only promotes local agricultural green development, but also exerts a positive spillover effect on adjacent regions through technological diffusion and industrial linkages. In diverse regions, government environmental regulations exert a non-linear inverted U-shaped influence therein.Originality/value Firstly, this study broadens our understanding of the environmental impact effects and mechanisms of comprehensive straw utilization from the perspective of industrial agglomeration, enriching the existing research on straw resource utilization and agricultural green development. Secondly, the findings empirically validate the effectiveness of comprehensive straw utilization in China, providing a novel reference for promoting agricultural green development in emerging economies.
Purpose This paper investigates the impact of China's “Rural E-commerce Demonstration County” (REDC) policy on agricultural productivity, with a focus on the mechanisms through which e-commerce shapes agricultural development. Design/methodology/approach Using county-level data, the study estimates the causal effects of the REDC policy on agricultural total factor productivity (TFP). Robust checks and mechanism analyses are conducted to ensure reliability and to explore channels, including market incentives, resource reallocation, and institutional support. Findings The REDC policy significantly improves agricultural TFP in pilot counties, with an average increase of 5.4%. The effect is primarily driven by enhanced production incentives and efficient reallocation of land and labor. The policy's impacts are stronger in counties with confirmed land rights, access to digital credit, advanced digital infrastructure, and higher grain production capacity. In addition to productivity gains, the policy boosts total agricultural output and rural household income. Originality/value The study provides new evidence on how e-commerce policies can promote rural productivity in developing countries. It highlights the potential of digital platforms to strengthen rural markets, optimize resource allocation, and advance sustainable agricultural development.
Purpose This paper discusses the production technology gap in China's livestock sector, a critical factor contributing to the sector's low competitiveness. Design/methodology/approach This paper refines the livestock yield calculation formula and employs it as the central variable. Using static and dynamic comparisons, we analyze the trends and development potential of China's livestock industry competitiveness from international and domestic perspectives. Findings The production technology level of China's livestock is generally low. After rapid progress initially, the rate of technological advancement has declined sharply since the beginning of the 21st century, resulting in a persistent gap between China and leading international producers. Furthermore, technological progress in pork and chicken production in the country has always lagged behind that in beef and mutton production. The beef cattle and meat sheep sectors are exhibiting faster “catch-up” growth, possibly because they started from a lower baseline, whereas the commercial pig and poultry sectors are experiencing diminishing marginal returns or a “growth bottleneck” typical of mature industries. Originality/value This study provides a simplified framework for assessing competitiveness through yield analysis and refines yield formulas for different livestock types. The findings have important practical implications for the sector.
Purpose Since 2018, the escalation of Sino-US trade frictions has placed China's external trade stability under unprecedented pressure. Against this backdrop, pilot free-trade zones (FTZs) have been positioned as a key policy instrument for sustaining resilient trade growth. Therefore, it is necessary to evaluate the role of free-trade pilot zones in export resilience.Design/methodology/approach Using panel data covering 274 Chinese cities from 2011 to 2021 and a multi-period difference-in-differences (DID) design, this article evaluates whether - and through which channels - the establishment of FTZs enhances export resilience.Findings The findings are fourfold. (1) FTZ designation significantly and robustly strengthens city-level export resilience; the result survives a battery of placebo tests, alternative resilience measures and an instrumental-variable strategy that addresses potential endogeneity. (2) The effect is heterogeneous: it is stronger in the eastern coastal region and in cities that are initially endowed with superior human capital, technological capacity and industrial sophistication. (3) Mechanism analysis reveals that the FTZ-induced improvement in export resilience operates primarily through accelerated technological innovation, skilled-labor agglomeration and industrial upgrading, and these effects are more pronounced in areas with higher economic development. (4) Importantly, the resilience-enhancing effect remains intact even after the outbreak of Sino-US trade tensions, indicating that FTZs serve as a buffer against external shocks.Originality/value These results provide rigorous evidence that FTZs bolster export resilience, offering actionable insights for the design of high-standard opening-up policies.
Purpose This paper investigates risk spillovers between US and Chinese agricultural futures markets under asynchronous trading and evaluates the driving role of US-China tensions.Design/methodology/approach We apply the R 2-decomposed connectedness framework to measure contemporaneous and lagged multi-layer spillovers between the two markets, and use a GARCH-MIDAS model to assess the impact of the news-based UCT Index.Findings The main findings are threefold. First, contemporaneous connectedness between US and Chinese agricultural commodities is the dominant component, while lagged connectedness (asynchronous trading and delayed adjustment) remains economically important, and US agricultural commodities are a persistent net transmitter at all layers of the risk network. Second, UCT has a significant state-dependent influence on the systemic risk of these agricultural commodities and becomes a strong positive driver in high-UCT regimes. Third, a minimum connectedness portfolio based on R 2 decomposition achieves more effective risk-adjusted performance than portfolios built on traditional connectedness models.Originality/value This study helps to clarify the complex pattern of risk transmission and price discovery between the two markets and provides practical tools for measuring and managing risk spillovers and market vulnerability.
Purpose - This article examines the impact of the U.S.-China trade war on the quality and quantity of China's agricultural exports. While most current studies have focused on the effects of China's retaliatory tariffs on U.S. agriculture, this study investigates the reverse channel, focusing on how escalating U.S. tariffs affected Chinese agricultural exports to the U.S. We highlight a previously overlooked dimension by examining not only changes in export value and volume but also product quality in response to the trade war, offering new insights into the broader implications of trade policy uncertainty. Design/methodology/approach - We employ a difference-in-differences approach using bilateral monthly HS 8-digit-level export data from 2017 to 2021, combined with U.S. tariff schedules. Export quality is measured using a structural demand estimation following Khandelwal (2010) and Fan et al. (2015). We assess treatment effects on export quantity, f.o.b. price and product quality by comparing treated exports (to the U.S.) with control exports (to other countries). Extensive robustness checks and heterogeneity analyses are conducted to validate the results across products and provinces. Mechanism analysis explores whether quality downgrading occurred through product exit at the extensive margin. Findings - We reveal a hidden export margin that is rarely discussed in the literature: the trade war not only reduced export value but also lowered the export quality of Chinese agricultural products, with no significant impact on export prices. Exporters responded by shifting to lower-quality varieties rather than reducing prices, indicating quality downgrading as a hidden margin of adjustment to trade war. The negative effects were more prominent in animal products, while provinces with higher export sophistication, agricultural orientation, or policy support experienced smaller negative impacts on exports in response to the trade war. Originality/value - This study contributes to the literature by uncovering a quality dimension of adjustment in response to trade war tariffs, which has been largely overlooked in previous research. While prior studies emphasize price and volume effects, our findings highlight quality downgrading as a strategic and non-price response to rising trade costs. By focusing on the agricultural sector, which is often vulnerable yet underexplored in trade war analyses, the article provides important insights for policymakers and exporters navigating future trade uncertainties, emphasizing the importance of maintaining product quality as part of export resilience strategies.
PurposeAdopting soil fertility management practices (SFMPs) has become important in developing economies, especially in tackling land degradation, erosion and low soil fertility. This study uses farm survey data from 786 vegetable producers in rural China and analyzes the factors that affect SFMP adoption and its impact on fertilizer profitability.Design/methodology/approachThis study applies the multivariate probit model to explore adoption decisions by farm households choosing among multiple SFMPs, and the three-stage least squares method for causal effect analysis on fertilizer profitability of farms.FindingsPositive (complementary) correlations are observed between subsoiling adoption and residue returning and soil testing, while adoption of fertigation is negatively correlated (substitutional) with subsoiling and residue returning. The probability of SFMPs adoption primarily depends on factors including the household head's gender, education, farm area, experience with natural disasters, tenure security, access to training, access to the Internet and social capital. Farmers who adopt SFMPs can achieve higher profitability from fertilizer use than non-adopters.Practical implicationsPolicymakers should seek to improve training in adopting SFMPs, increase farmers' education and ecological awareness, strengthen social networks and promote appropriate combinations of SFMPs adoption.Originality/valueThis study contributes to the literature by examining on the determinants that facilitate or impede multiple combinations of SFMPs adoption by farmers, as well as the impact of adoption on farmers' fertilizer profitability, based on a well-established theoretical framework, to close the gap in the vegetable sector.
PurposeWhile peer effects in education have been extensively studied in developed countries, there has been limited investigation of how physical proximity shapes academic achievement in rural educational settings. This study examines peer effects among primary school students in rural China and investigates whether these effects operate differently across student ability levels through distinct mechanisms.Design/methodology/approachData from 2,956 primary school students across rural counties in Shaanxi Province, China, were analyzed. We employ an instrumental variable approach using physical distance between students in classroom seating arrangements to address endogeneity in peer group formation. Study group formation is measured through student-reported study partnerships, while academic performance is assessed using standardized mathematics test scores.FindingsStudy groups significantly enhance student achievement, with heterogeneous effects across ability levels. Middle tercile students show the strongest peer effects (0.318 standard deviations), compared to bottom tercile students (0.241 standard deviations). Mechanism analysis reveals that peer effects operate primarily through improved intrinsic motivation, enhanced self-concept, and reduced academic anxiety among middle-performing students, while effects for bottom tercile students operate through alternative pathways not captured in our measures.Research limitations/implicationsOur findings inform cost-efficient policy interventions in both educational institutions and corporate environments. The evidence indicates that optimizing spatial proximity in peer networks represents an efficient policy instrument for human capital accumulation, particularly valuable in resource-constrained settings, as it leverages existing human capital without substantial additional inputs.Originality/valueThis study provides the first evidence of peer effects using classroom seating arrangements as an identification strategy in a developing country/rural community context. The paper demonstrates that optimizing peer proximity represents a cost-efficient policy instrument for human capital development in resource-constrained rural areas, offering important implications for educational policy in agricultural communities where traditional educational resources are limited.
PurposeThis paper aims to explore the effects of social trust and intermediary organizations on the price at which large-scale production units (LSPUs) rent a plot in rural land markets and to uncover the underlying causal mechanisms driving these effects.Design/methodology/approachBased on an LSPU- and plot-level dataset from Jiangsu and Jiangxi Provinces in China, OLS regressions are estimated alongside treatment-effects and control function models that consider the potential endogeneity of intermediary involvement.FindingsOur results imply that LSPUs with higher levels of social trust and those renting plots through intermediary organizations tend to reach higher land rental prices. Moreover, trust and intermediary involvement complement this process. We also verify that the positive effects of trust and intermediary involvement on land rental prices can be attributed to a reduction in transaction costs.Originality/valueFirst, this is the first to integrate social trust and intermediary involvement within a unified framework to reveal their combined effects on land rental prices. Second, the underlying mechanism is revealed through the lens of transaction cost economics, addressing a gap overlooked in previous studies. Third, it provides a critical demand-side perspective by centering the analysis on LSPUs, countering the predominant supply-side bias in the field.
Purpose This paper examines how natural enemies, as ecological control agents, influence farmers’ pesticide use decisions and how this effect is conditioned by farmers’ cognitive understanding of pest–enemy dynamics and their risk attitudes. Design/methodology/approach Drawing on original data from 327 pear farmers in three of China’s major producing provinces (Hebei, Shandong and Hubei), this study integrates three data sources: ecological monitoring of orchard level predator populations, incentivized experiments on farmer risk preferences and structured household surveys. Interaction models are estimated to assess how farmers’ cognition moderates the relationship between natural enemy density and pesticide use, measured in terms of both expenditure and spraying frequency. Findings Results show that farmers with greater ecological awareness, specifically, better recognition of pests, natural enemies, and their interrelations apply pesticides less frequently and at lower cost. This cost reducing effect of cognition is significantly amplified under higher natural enemy densities, suggesting a synergistic relationship between ecological assets and behavioral responses. In contrast, farmers with higher risk aversion tend to spray more often, though not necessarily at greater expense, indicating a quantity-over-quality behavioral pattern in risk management. Originality/value This study makes several novel contributions. First, it moves beyond perception based proxies by incorporating field-measured predator densities into behavioral modeling. Second, it identifies a micro-level mechanism whereby ecological conditions and farmer cognition jointly shape input behavior. Third, it highlights how natural enemies are underutilized in current farmer decision-making due to low awareness, providing concrete evidence for targeting ecological extension services. The findings have practical relevance for advancing sustainable pest control in perennial systems such as orchards and for promoting nature-based solutions in developing country contexts.
Purpose Promoting the dual reduction of fertilizer and pesticide is essential to safeguarding food security and protecting the environment, thereby advancing the transformation of high-value agriculture (HVA). This study examines the impact of government agricultural training on chemical input among vegetable farmers in China, with further investigation into potential mechanisms and household heterogeneity. Design/methodology/approach Drawing on nationally representative longitudinal data from the Rural Fixed Observation Points Survey (RFOPS) of China (2019–2022), this study applies a two-way fixed effects model to empirically evaluate the impact of governmental agricultural training on chemical input use among vegetable farmers. Findings The results reveal that agricultural training significantly contributes to the dual reduction of fertilizer and pesticide expenditures. Mechanism analysis indicates that agricultural training enhances farmers' participation in efficiency-driven production mode – such as agricultural social services and mechanized operations – and facilitates the adoption of green production technologies, including precision irrigation, soil testing and formula fertilization and conservation tillage. Heterogeneity analysis shows that training effects are stronger among farmers with higher education levels, full-time farming status, non-elderly household members and larger operational scales. In addition, agricultural training significantly reduced production expenditures and increased agricultural income. Originality/value This study contributes to the literature by providing robust national-level evidence on how government agricultural training shapes chemical expenditures among vegetable farmers. It also identifies key mechanisms and heterogeneous effects, offering insights for designing targeted and effective training programs to advance the sustainable transformation of high-value agriculture.
PurposeThis study explores the synergistic management of the water-energy-food (WEF) resources in China by rationally recycling carbon revenues in the process of achieving carbon neutrality through carbon pricing.Design/methodology/approachThis study constructs a dynamic computable general equilibrium model and proposes four typical carbon revenue recycling schemes to simulate the impact on WEF resources and macroeconomics in terms of resource production, consumption, urban and rural household incomes, expenditures and welfare.FindingsReturning carbon revenues to households as a lump-sum transfer would increase the welfare of urban and rural households, reduce the urban-rural income gap and promote food supply security. With the shift from traditional thermal power, electricity will show the greatest potential for water savings though will be offset by increased water use from hydropower and biomass. Agriculture will always face trade-offs between stable food production and water saving under different schemes. In comparing the effectiveness of schemes, the no revenue recycling and the transfer to households will be most effective for water saving and rural agricultural development, respectively. Reducing indirect taxes offers superior benefits by reducing gross domestic product loss, contributing to energy savings, increasing profits in agricultural sectors' and enhancing the effectiveness of the water-energy-food system.Originality/valueThis study can address the gaps in existing studies that focus on the impact of carbon reduction policies on individual resources and the lack of comprehensive analysis under the carbon neutrality target.
PurposeEnsuring rural migrants' access to sustainable income forms the foundation of urban integration. This study examines how China's household registration system reform (HRSR) affects the sustainable income of migrant households by addressing institutional barriers within the urban-rural dual structure.Design/methodology/approachThis study develops a theoretical framework that incorporates the HRSR and sustainable income. Based on this framework, it employs a difference-in-differences (DID) model to empirically investigate the impact of the HRSR on household sustainable income. It also explores heterogeneous effects based on human capital, factor reallocation effects, regional context and conducts mechanism analysis.FindingsThe results show that the HRSR significantly enhances sustainable income of rural migrant households. While the reform raises wage, property, and transfer income, it reduces operating income. Heterogeneity analysis indicates stronger effects for rural migrant households with higher human capital, those participating in land transfer, and those migrating to more developed and better-connected regions. Mechanism analysis shows that the HRSR improves sustainable income by enhancing nonfarm employment stability, financial asset allocation effectiveness, and access to public services.Originality/valueThis study offers new insights into how institutional reforms like the HRSR affect sustainable income at the household level. The findings have important implications for promoting the integration of rural migrant households into urban areas.
Purpose Digital finance injects new vitality into achieving shared prosperity among farmers and rural areas. This study investigates the impact and mechanism of digital finance use on farmers' income growth and intra-rural income inequality, specifically assessing its roles in “raising the bottom” and “expanding the middle” within the context of achieving common prosperity in China. In terms of heterogeneity analysis, it pays attention to the different income groups. Furthermore, the mechanism of digital finance use in promoting income growth and reducing income disparities is to be investigated. Design/methodology/approach This study utilizes panel data from CRRS in 2020 and 2022 to construct multidimensional digital finance adoption indicators from three dimensions: digital payments, digital credit, and digital wealth management. It systematically evaluates the impact of digital finance adoption on farmers' income and rural income inequality, and identifies its underlying mechanisms. Findings The results show that digital finance adoption significantly increases farmers' income and reduces income inequality, with these effects mediated through the alleviation of credit constraints, enhanced efficiency in information utilization, and strengthened social interactions. Moreover, the income-enhancing effect of digital finance is most pronounced for low-income households, underscoring its “raising the bottom” function; it also substantially raises the likelihood that low-income households transition into the middle-income bracket, thereby exhibiting an “expanding the middle” effect. Originality/value Adopting a micro-level household perspective, this paper empirically analyzes the dual effects of digital finance – spanning payments, credit, and wealth management – on farmer income levels and the income distribution. It further uncovers the mediating roles of credit accessibility, information efficiency, and social interactions. The study concludes that digital finance fosters inclusive growth by “raising the bottom and expanding the middle,” thereby providing a robust empirical basis for policy-making aimed at enhancing the rural digital financial ecosystem.
