Can information and communication technologies contribute to poverty reduction? Evidence from poor counties in China

Information and communication technologies (ICTs) have received increasing attention in recent years as a promising means to address poverty challenges in rural China. This paper uses a unique three-wave panel data set of household surveys, collected from seven officially recognized poor counties in rural China during 2012-2018, to examine the effect of ICT adoption on poverty. The results show that ICTs contributed positively to poverty reduction in the sampled counties, which may have been primarily achieved through increased migration and off-farm income, instead of through improved agricultural production and farm income. This suggests that ICT development facilitated households escaping poverty by helping them diversify their livelihood strategies away from agriculture in remote mountainous areas. The findings highlight the importance of creating incentives to complement the opportunities brought by ICTs for local development. It is important to strike a balance between poverty reduction and food security objectives.