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The formation of Taobao villages in China

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  • Qi, Jiaqi
  • Zheng, Xiaoyong
  • Guo, Hongdong

Abstract

We conduct the first econometric analysis of the determinants of the formation of Taobao villages, the rural e-commerce clusters recently appeared in China. We examine the roles of various factors such as location, education, transportation infrastructure, the structure of local economy, urban-rural income difference, local government policies and spillover from nearby Taobao villages in the formation of Taobao villages. We find that education plays an important and positive role in the formation of Taobao villages, while credit support for other businesses makes the formation of new Taobao villages less likely.

Suggested Citation

  • Qi, Jiaqi & Zheng, Xiaoyong & Guo, Hongdong, 2019. "The formation of Taobao villages in China," China Economic Review, Elsevier, vol. 53(C), pages 106-127.
    • Handle: RePEc:eee:chieco:v:53:y:2019:i:c:p:106-127
    DOI: 10.1016/j.chieco.2018.08.010
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    Cited by:

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    2. Komatsu, Sho & Suzuki, Aya, 2021. "The Impact of Rural E-Commerce Development on Rural Income and Urban-Rural Income Inequality in China: A Panel Data Analysis," 2021 Conference, August 17-31, 2021, Virtual 315050, International Association of Agricultural Economists.
    3. Liu, Dan & Jin, Yanhong & Pray, Carl & Liu, Shuang, 2020. "The Effects of Digital Inclusive Finance on Household Income and Income Inequality in China?," 2020 Annual Meeting, July 26-28, Kansas City, Missouri 304238, Agricultural and Applied Economics Association.
    4. Guo, Di & Jiang, Kun & Xu, Chenggang & Yang, Xiyi, 2022. "Industrial clustering, income and inequality in rural China," World Development, Elsevier, vol. 154(C).
    5. Yonghu Zhang & Yifeng Zhang, 2024. "The Influence of Digital Literacy on the Phenomenon of Deviation between Farmers’ E-Commerce Sales Willingness and Behavior: Evidence from Rural China," Sustainability, MDPI, vol. 16(7), pages 1-22, April.
    6. Di Liu & Pan Wang, 2023. "WeChat E-Commerce, Social Connections, and Smallholder Agriculture Sales Performance: A Survey of Orange Farmers in Hubei Province, China," Agriculture, MDPI, vol. 13(11), pages 1-14, October.
    7. Le Li & Tao Song, 2023. "Enabling In-Situ Urbanization through Digitalization," Land, MDPI, vol. 12(9), pages 1-19, September.
    8. Yumei Lin & Chenghan Li, 2023. "Does rural e-commerce agglomeration help expand family farms’ size? Evidence from Taobao villages in China's Yangtze River Delta," Electronic Commerce Research, Springer, vol. 23(3), pages 1731-1752, September.
    9. Lili Li & Yiwu Zeng & Zi Ye & Hongdong Guo, 2021. "E‐commerce development and urban‐rural income gap: Evidence from Zhejiang Province, China," Papers in Regional Science, Wiley Blackwell, vol. 100(2), pages 475-494, April.
    10. Jun Wen & Hadi Hussain & Renai Jiang & Junaid Waheed, 2023. "Overcoming the Digital Divide With ICT Diffusion: Multivariate and Spatial Analysis at China’s Provincial Level," SAGE Open, , vol. 13(1), pages 21582440231, March.
    11. H. Holly Wang & Yu Jiang & Shaosheng Jin & Qiujie Zheng, 2022. "New online market connecting Chinese consumers and small farms to improve food safety and environment," Canadian Journal of Agricultural Economics/Revue canadienne d'agroeconomie, Canadian Agricultural Economics Society/Societe canadienne d'agroeconomie, vol. 70(4), pages 305-324, December.
    12. Mengmeng Liu & Wanqing Wu & Hua Li, 2023. "The Influence of Grassland Ecological Compensation Policy on Grassland Quality: Evidence from the Perspective of Grassland Ecosystem Vulnerability," Agriculture, MDPI, vol. 13(9), pages 1-15, September.
    13. Melia, Elvis, 2020. "African jobs in the digital era: Export options with a focus on online labour," IDOS Discussion Papers 3/2020, German Institute of Development and Sustainability (IDOS).
    14. Zhong, Xiaoping & Wang, Jingjing & Yu, Xiaohua, 2022. "Internet celebrities, public opinions and food system change in China: a new conceptual framework," International Food and Agribusiness Management Review, International Food and Agribusiness Management Association, vol. 26(3), October.
    15. MA Xinxin & KOMATSU Sho, 2023. "Impact of E-commerce Development on Income Inequality: Evidence from rural China based on cross-county panel data," Discussion papers 23044, Research Institute of Economy, Trade and Industry (RIETI).
    16. Zhu, Xiaoke & Hu, Ruifa & Zhang, Chao & Shi, Guanming, 2021. "Does Internet use improve technical efficiency? Evidence from apple production in China," Technological Forecasting and Social Change, Elsevier, vol. 166(C).
    17. Wang, Di & Zhou, Tao & Wang, Mengmeng, 2021. "Information and communication technology (ICT), digital divide and urbanization: Evidence from Chinese cities," Technology in Society, Elsevier, vol. 64(C).
    18. Juan Lin & Han Li & Mingshui Lin & Chuhai Li, 2022. "Rural e‐commerce in China: Spatial dynamics of Taobao Villages development in Zhejiang Province," Growth and Change, Wiley Blackwell, vol. 53(3), pages 1082-1101, September.
    19. Han Chu & Robert Hassink & Dixiang Xie & Xiaohui Hu, 2023. "Placing the platform economy: the emerging, developing and upgrading of Taobao villages as a platform-based place making phenomenon in China," Cambridge Journal of Regions, Economy and Society, Cambridge Political Economy Society, vol. 16(2), pages 319-334.
    20. Hailan Qiu & Xueyi Zhang & Mingrui Feng & Zhenquan Zhang & Jiawei Wang & Zhipeng Wang, 2024. "Exploring the Income-Increasing Benefits of Rural E-Commerce in China: Implications for the Sustainable Development of Farmers," Sustainability, MDPI, vol. 16(17), pages 1-22, August.
    21. Gao, Jing & Zeng, Yiwu & Liu, Min, 2024. "Policy interventions and market innovation in rural China: Empirical evidence from Taobao villages," Economic Analysis and Policy, Elsevier, vol. 81(C), pages 1411-1429.
    22. KOMATSU Sho & MA Xinxin & SUZUKI Aya, 2022. "Influence of E-commerce on Birth Rate: Evidence from rural China based on county-level longitudinal data," Discussion papers 22101, Research Institute of Economy, Trade and Industry (RIETI).
    23. Dan Pan & Huan Chen & Guzhen Zhou & Fanbin Kong, 2020. "Determinants of Public-Private Partnership Adoption in Solid Waste Management in Rural China," IJERPH, MDPI, vol. 17(15), pages 1-14, July.

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    More about this item

    Keywords

    E-commerce; Cluster; Taobao villages;
    All these keywords.

    JEL classification:

    • O14 - Economic Development, Innovation, Technological Change, and Growth - - Economic Development - - - Industrialization; Manufacturing and Service Industries; Choice of Technology
    • O25 - Economic Development, Innovation, Technological Change, and Growth - - Development Planning and Policy - - - Industrial Policy

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