Digital Rural Construction and Rural Household Entrepreneurship: Evidence from China

Abstract

Promoting rural entrepreneurship is an important approach to achieving rural revitalization, accelerating the construction of a new development pattern, and enhancing the well-being of farmers. Based on the County Digital Rural Index (CDRI) and the China Household Finance Survey (CHFS), we empirically examine the impact and role of digital rural construction (DRC) on rural household entrepreneurship. Our findings are as follows: (1) DRC plays a vital role in facilitating entrepreneurial behaviors (EB) and entrepreneurial performance (EP) among rural households. (2) DRC indirectly fosters rural household entrepreneurship by facilitating resource acquisition and opportunity identification. (3) Our heterogeneity analysis reveals that DRC’s promotion effect is stronger among local entrepreneurs and individuals with risk-averse tendencies. Additionally, DRC has a more pronounced effect in stimulating EB within lower-income families, while its impact on EP shows the opposite trend. Furthermore, DRC’s influence on rural household entrepreneurship is particularly significant in regions with more advanced digital rural development. (4) Additionally, we observe a significant positive impact of the four dimensions of DRC on rural household entrepreneurship, further affirming the role of DRC in driving rural household entrepreneurship. In the digital economy era, this study provides empirical evidence to promote the integration of digital technology and rural entrepreneurship, offering valuable insights for advancement in this domain.