Digital Infrastructure and Increasing Farmers’ Income: A Quasi-Natural Experiment Based on the “Broadband China” Strategy

Abstract

Digital infrastructure serves as a significant catalyst for economic advancement, capable of narrowing the digital gap that exists between urban, rural, and regional areas. And it enables more people to enjoy the convenience brought by digitalization, and promote social inclusion and equality. This study employs the "Broadband China" strategy as a quasi-natural experiment and employs a progressive Difference-in-Differences (DID) model to investigate the effects of digital infrastructure on increasing farmers' income. The findings of the study indicate that the development of digital infrastructure can assist in increasing farmers’ income. The establishment of digital infrastructure has greatly facilitated industrial rationalization, non-agricultural employment and human capital improvement in rural areas, provided farmers with more business opportunities and employment options, and contributed to the realization of rural revitalization and common prosperity. This research provides empirical support to gain a more profound insight into the significance of digital advancement to rural economic growth, and also provides a useful reference for relevant policy formulation.