Understanding the impact of internet use on farmer entrepreneurship: evidence from rural China

Abstract

ABSTRACT Entrepreneurship is critical for poverty reduction and economic growth in developing regions. This paper first examines the impact of Internet use on farmer entrepreneurship and explores the heterogeneous effects between the south and north of Jiangsu because the former is much more economically developed than the latter. Further, this paper detects the influencing mechanisms between Internet use and farmer entrepreneurship. The results show that Internet use has a significant and positive effect on farmer entrepreneurship, and the effects are heterogeneous in different regions. Specifically, Internet use can promote farmer entrepreneurship better in the north of Jiangsu than in the south. Loan access and social network impose mediating effects between Internet use and farmer entrepreneurship. Specifically, Internet use can encourage farmer entrepreneurship by improving the loan access and extending farmers’ social networks. This study underscores the important role of Internet for entrepreneurship in rural areas.