Mon., Nov. 25, 2024: Staff Seminar “The effect of information communication technology on entrepreneurship: Evidence from rural China” (online)

We regularly hold Staff Seminars for research presentations and information exchanges among AGI Researchers.

*This seminar will be online and free of charge.

*Please refer to the following for details.

Date and Time

Monday, November 25, 2024 from 2:00 pm to 3:30 pm
*A question-and-answer session is scheduled at the end of the presentation.

Presenter

Dr. Sho KOMATSU, Assistant Professor, AGI

Title

The effect of information communication technology on entrepreneurship: Evidence from rural China

Abstract

As entrepreneurial dynamism is widely recognized as a driver of innovation and an engine of economic growth, it is important to understand the determinants of entrepreneurship. Although the number of studies on entrepreneurship in China has increased recently, there is little literature examining the role of ICT and its potential mechanisms of individual entrepreneurship in rural areas. This study investigates the effect of ICT utilization on entrepreneurship and its potential mechanisms by using China Family Panel Studies (CFPS) micro data from 2014 to 2020. We identify Internet use via computers, Internet use via mobile devices, and Internet use by computer or mobile devices as proxy variables for ICT utilization. Our empirical results indicate that the Internet has a significant and positive effect on entrepreneurship in rural China. The results remain robust after a series of robustness tests. This study also finds that the effect is heterogeneous by gender, generation categories, educational background, and regions. Specifically, the Internet is more beneficial for a person with a high school education or below and a younger generation. Furthermore, mechanism analysis shows that the Internet can promote entrepreneurship by facilitating access to information and the formation of social capital. The above finding on the effect of the Internet on entrepreneurship in rural China, the largest developing country where the Internet has developed rapidly and entrepreneurship is necessary for rural revitalization, will have important implications for economic development and poverty reduction in other developing countries.