Digital capability and rural household development resilience: A double machine learning approach

This paper examines the effect of digital capability on the rural household development resilience. Using data from the China Family Panel Studies (CFPS), we first measure the development resilience of rural households using moment estimation, defined as the probability that a household's welfare exceeds a specified threshold at a given time. Subsequently, we employ the double machine learning model to evaluate the effect of digital capability on household resilience. The results indicate that digital capability significantly enhances the rural household development resilience. Further mechanism analyses reveal that digital capability boosts development resilience primarily through the effects of information acquisition, financial inclusion, income growth, and asset accumulation. Additionally, the resilience-enhancing effect of digital capability is particularly beneficial for disadvantaged groups with low level of development resilience, limited human capital and social capital, contributing to inclusive development. Accordingly, this paper argues that fostering digital capability is crucial for the sustainable development of rural households.