Digital Payment And Household Entrepreneurial Activity

China launched a resolute battle fighting Covid-19 Epidemic since 2019.Government Work Report 2021 fully affirmed the significance of entrepreneurship in stabilizing employment and maintaining people’s wellbeing.Keep the activity of innovation and entrepreneurship has become an important part of providing continuous power for the 14th Five-Year period(2021-2025).Digital payment,which provides technical support for e-commerce,relies on its natural advantages of wide coverage and strong penetrating power.It plays a significant role in reducing transaction costs,improving payment efficiency,broadening the source of customers,and enhancing social interaction.It superimposes favorable factors such as the cluster effect formed by the Internet and promotes re-optimization of resource allocation.It provides a feasible solution to the inherent dilemma of maintaining household entrepreneurial activity.Based on the China Household Finance Survey(CHFS)in 2017,this paper takes the family as the main body of entrepreneurial behavior and establishes Probit model examining the impact of digital payments on the household entrepreneurial activity.Considering the possible endogeneity in the model,an instrumental variable method is employed where ownership of computer or smartphone is set as the instrumental variable.And online purchase from 2015 is used as an new instrumental variable to conduct a robustness test.The study finds that digital payment significantly increases the likelihood of household entrepreneurial activity.Moreover,it has greater impact in promoting entrepreneurial activity of active entrepreneurial households.The mechanism could be 1)availability of formal financial credit;2)enriched social interaction.Based on above analysis,the paper endeavors policy recommendations in response to the government strategic planning of "building a new development pattern with domestic and international double cycles as the main body and mutual promotion of domestic and international double cycles".Compared with the previous research,the analysis of household entrepreneurial activity from the perspective of digital payment is little.The possible contribution of this article tries to find conditions and factors that promote continuous innovation,enrich the theories of household entrepreneurship research,and supplement the influence of household entrepreneurial activity channels and mechanisms.