Adding insult to injury: Living in a remote location increases the burden of gift expenses among the rural poor in China

Abstract

Based on data from the China Labor‐force Dynamics Survey (CLDS), our study examines how geographical remoteness impacts farmers' gift expense burden. Farmers' gift expense burden increases significantly as the distance from the village to the county‐level city increases. Two key mechanisms for more remote rural areas exacerbate farmers' gift expense burden: stronger reliance on neighbours and relatives for assistance and more concentrated authority among local officials. Our research offers new perspectives on disparities in gift expense burden among farmers in developing countries and suggests viable avenues to alleviate their financial strain.