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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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    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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