Peer Effects and Social Network: The Case of Rural Diffusion in Central China

19 Pages Posted: 6 Oct 2015 Last revised: 10 Feb 2016

See all articles by Hang Xiong

Hang Xiong

ETH Zurich; King's College London

Diane Payne

UCD School of Sociology, Dynamics Lab,

Stephen Kinsella

University of Limerick

Date Written: October 1, 2015

Abstract

We examine how adoption of a high-value crop diffuses through social networks, using detailed demographic, social network, and adoption data from ten villages in Central China. We develop a model of diffusion through a multiplex network that distinguishes the influence of sharing experiential resources by earlier adopters and that of externalities due to adoption behaviours. We find that the sharing of resources among family members and the production externalities arose between contiguous land plots both significantly influence farmers' adoption. Furthermore, the sharing of resources is more influential in the early stage of diffusion process, whereas the externalities mainly matter in the late stage. We also find that adopters give priority to those with a stronger kinship tie when deciding with whom to share their resources, and proximity in age can strengthen the kinship ties.

Keywords: Peer Effects, Diffusion, Social Networks, High-Value Crops

JEL Classification: A14, D70, Q12, R20

Suggested Citation

Xiong, Hang and Payne, Diane and Kinsella, Stephen, Peer Effects and Social Network: The Case of Rural Diffusion in Central China (October 1, 2015). Available at SSRN: https://ssrn.com/abstract=2669302 or http://dx.doi.org/10.2139/ssrn.2669302

Hang Xiong (Contact Author)

ETH Zurich ( email )

Sonneggstrasse 33
Zurich, 8092
Switzerland

HOME PAGE: http://hangxiong.net

King's College London ( email )

Strand
London, England WC2R 2LS
United Kingdom

Diane Payne

UCD School of Sociology, Dynamics Lab, ( email )

UCD Geary Institute of Public Policy
University College Dublin, Belfield Campus,
Dublin, Dublin 4
Ireland
++35317168561 (Phone)

HOME PAGE: http://dl.ucd.ie

Stephen Kinsella

University of Limerick ( email )

Limerick
Ireland
+35361233611 (Phone)
+35361330316 (Fax)

HOME PAGE: http://stephenkinsella.net

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