Digital economy and rural household resilience: Evidence from China

Abstract

Enhancing the resilience of rural households against the impacts of risks and moulding their enduring strength despite modest scale holds paramount contemporary significance for a multitude of developing nations, including China. This study uses the microdata of the China Labor-Force Dynamics Survey (CLDS), systematically measures the rural household resilience index for the first time, analyses the impact of the digital economy on the resilience of rural households, and dissects the group differences and mechanism of action. We found that from 2012 to 2018, the Chinese rural household resilience index had significant differences in time and space, and village market, gentry assistance, economic organisation, and income from collective operation were the most important indicators affecting the rural household resilience index. The improvement of the digital economy index, to some extent, suppressed the improvement of the rural household resilience index. Meanwhile, heterogeneity analysis suggested that depending on family size and housing property rights, the impact of the digital economy on the resilience of rural households will be divided. Moreover, mechanism analysis showed that the digital economy further affected the resilience of rural households through the employment comprehensive effect, income structure effect and member security effect.

Keywords

• china labor-force dynamics survey
• digital technology
• index system
• random forest algorithm
• resilience measurement