Revenue-increasing effect of rural e-commerce: A perspective of farmers' market integration and employment growth

Wei Li and Weiwei He

Economic Analysis and Policy, 2024, vol. 81, issue C, 482-493

Abstract: This study uses village and household matching information from the 2018 China Labor-force Dynamic Survey to analyze the impact of rural e-commerce on farmers’ revenue. The outcomes of the baseline regression and robustness discussions show that rural e-commerce greatly improved farmers’ revenue. After solving endogeneity problems in the model using rural clan power as the instrumental variable, the influence of e-commerce on farmers’ revenue is still significantly positive. Further analysis suggests that rural e-commerce directly affects farmers’ revenue by promoting farmers' market integration, and indirectly affects it by expanding affiliated industries that can promote employment growth. Furthermore, in the case of a higher level of transportation infrastructure development, the impact of rural e-commerce-affiliated industries on farmers’ revenue will be greater. However, not all farmers receive the same benefits from e-commerce. Farmers with more human capital receive more benefits from e-commerce. Our results have important policy implications for developing countries that hope to grow farmers’ revenue and rural development through e-commerce.

Keywords: Rural e-commerce; Farmers’ revenue; Farmers' market integration; Employment growth; Transportation infrastructure (search for similar items in EconPapers)
JEL-codes: C5 Q12 Q13 (search for similar items in EconPapers)
Date: 2024
References: View references in EconPapers View complete reference list from CitEc
Citations: View citations in EconPapers (7)

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Persistent link: https://EconPapers.repec.org/RePEc:eee:ecanpo:v:81:y:2024:i:c:p:482-493

DOI: 10.1016/j.eap.2023.12.015

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