Poverty alleviation through e-commerce: Village involvement and demonstration policies in rural China

The diffusion of e-commerce has played a significant role in recent rural economic development in China. E-commerce is also considered as an efficient channel to alleviate poverty in rural China. Voluminous studies have investigated the contribution of e-commerce to agricultural development, yet it...

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Main Authors: Chao PENG, Biao MA, Chen ZHANG
Format: Article
Language:English
Published: KeAi Communications Co., Ltd. 2021-04-01
Series:Journal of Integrative Agriculture
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Online Access:http://www.sciencedirect.com/science/article/pii/S2095311920634220
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author Chao PENG
Biao MA
Chen ZHANG
author_facet Chao PENG
Biao MA
Chen ZHANG
author_sort Chao PENG
collection DOAJ
description The diffusion of e-commerce has played a significant role in recent rural economic development in China. E-commerce is also considered as an efficient channel to alleviate poverty in rural China. Voluminous studies have investigated the contribution of e-commerce to agricultural development, yet it is lacking empirical evidence as to the effects of e-commerce on rural poverty alleviation. Since the year of 2014, in order to develop rural e-commerce, Chinese government launched the National Rural E-commerce Comprehensive Demonstration Project. This gradual involvement policy offered a natural experiment for evaluation of e-commerce. Based on village-level survey data from rural China and Heckit method, our study finds that rural e-commerce has a significantly positive effect on rural income. Moreover, the effect is inverted U-shaped for the relative-poverty villages. The estimation of the propensity scores matching model confirms that the results are robust. The following policy recommendations are proposed: (1) policy support to rural e-commerce should prioritize the poverty-stricken villages. By doing so, the marginal income effects of e-commerce will be maximized. (2) Investment in internet infrastructure and establishment of human resources for e-commerce in rural areas will have spillover effects, increasing rural income through the “digital dividend”.
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spelling doaj-art-9fd56a5670ec4d2baad5d46bbebaf0152025-08-20T03:57:03ZengKeAi Communications Co., Ltd.Journal of Integrative Agriculture2095-31192021-04-01204998101110.1016/S2095-3119(20)63422-0Poverty alleviation through e-commerce: Village involvement and demonstration policies in rural ChinaChao PENG0Biao MA1Chen ZHANG2Administration and Management Institute, Ministry of Agriculture and Rural Affairs, Beijing 102208, P.R. China; Correspondence PENG ChaoSchool of Agricultural Economics and Rural Development, Renmin University of China, Beijing 100872, P.R. China; Correspondence MA BiaoInstitute of Population and Labor Economics, Chinese Academy of Social Sciences, Beijing 100006, P.R. ChinaThe diffusion of e-commerce has played a significant role in recent rural economic development in China. E-commerce is also considered as an efficient channel to alleviate poverty in rural China. Voluminous studies have investigated the contribution of e-commerce to agricultural development, yet it is lacking empirical evidence as to the effects of e-commerce on rural poverty alleviation. Since the year of 2014, in order to develop rural e-commerce, Chinese government launched the National Rural E-commerce Comprehensive Demonstration Project. This gradual involvement policy offered a natural experiment for evaluation of e-commerce. Based on village-level survey data from rural China and Heckit method, our study finds that rural e-commerce has a significantly positive effect on rural income. Moreover, the effect is inverted U-shaped for the relative-poverty villages. The estimation of the propensity scores matching model confirms that the results are robust. The following policy recommendations are proposed: (1) policy support to rural e-commerce should prioritize the poverty-stricken villages. By doing so, the marginal income effects of e-commerce will be maximized. (2) Investment in internet infrastructure and establishment of human resources for e-commerce in rural areas will have spillover effects, increasing rural income through the “digital dividend”.http://www.sciencedirect.com/science/article/pii/S2095311920634220poverty alleviationincomeNational Rural E-commerce Comprehensive Demonstration ProjectHeckit method
spellingShingle Chao PENG
Biao MA
Chen ZHANG
Poverty alleviation through e-commerce: Village involvement and demonstration policies in rural China
Journal of Integrative Agriculture
poverty alleviation
income
National Rural E-commerce Comprehensive Demonstration Project
Heckit method
title Poverty alleviation through e-commerce: Village involvement and demonstration policies in rural China
title_full Poverty alleviation through e-commerce: Village involvement and demonstration policies in rural China
title_fullStr Poverty alleviation through e-commerce: Village involvement and demonstration policies in rural China
title_full_unstemmed Poverty alleviation through e-commerce: Village involvement and demonstration policies in rural China
title_short Poverty alleviation through e-commerce: Village involvement and demonstration policies in rural China
title_sort poverty alleviation through e commerce village involvement and demonstration policies in rural china
topic poverty alleviation
income
National Rural E-commerce Comprehensive Demonstration Project
Heckit method
url http://www.sciencedirect.com/science/article/pii/S2095311920634220
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AT biaoma povertyalleviationthroughecommercevillageinvolvementanddemonstrationpoliciesinruralchina
AT chenzhang povertyalleviationthroughecommercevillageinvolvementanddemonstrationpoliciesinruralchina