The Entrepreneurial Effects of a Place‐based E‐commerce Policy

Lihao Yao, Yucheng Sun and Famin Yi

China & World Economy, 2026, vol. 34, issue 2, 249-280

Abstract: China introduced the National Rural E‐commerce Comprehensive Demonstration (NREC) policy against the backdrop of regional disparities in digital development and entrepreneurial activity. This place‐based policy promoted e‐commerce development through a county–township–village logistics and service system, with the aim of stimulating local entrepreneurship. Exploiting the NREC as a quasi‐natural experiment, this study examined its effects on the quantity and quality of entrepreneurship at both the county and household levels. The results show that the NREC significantly increased the number of startups at the county level and raised households' business income and household employment. Suggestive evidence indicated that improved market access, enhanced digital skills, and eased credit constraints contributed to these effects. However, limited evidence was found for improvements in long‐term firm survival or enterprise upgrading. Overall, the findings provide new evidence on the entrepreneurial impacts of place‐based e‐commerce policies, with implications for developing economies.

Date: 2026
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