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Online markets, offline happiness: E-commerce development and subjective well-being in rural China

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  • Wei, Binhui
  • Zhao, Chunkai
  • Luo, Mingzhong

Abstract

Employing a quasi-natural experiment of the National Rural E-commerce Comprehensive Demonstration County (NRECDC) policy, our research aimed to explore the causal effect of e-commerce development and residents' subjective well-being (SWB) in rural China. By adopting the data of China Family Panel Studies (CFPS) from 2014 to 2020 and using a staggered difference-in-differences (DID) method, we found that rural e-commerce development resulted in an average increase of 2.40% in happiness scores. This positive effect can be explained by absolute material welfare enhancement, relative disparity reduction, and social capital accumulation. Further evidence suggests that e-commerce users are more likely to benefit from the NRECDC policy and that the synergistic effect of digital finance and e-commerce contributes to rural residents' SWB. However, we revealed that the potential digital divide effect in e-commerce development, due to technological barriers and self-digital exclusion, has not enhanced the SWB of some relatively disadvantaged groups in rural China. Our findings enrich the research field of digital well-being and shed light on the potential digital divide effects of digital tools such as e-commerce in rural China.

Suggested Citation

  • Wei, Binhui & Zhao, Chunkai & Luo, Mingzhong, 2024. "Online markets, offline happiness: E-commerce development and subjective well-being in rural China," China Economic Review, Elsevier, vol. 87(C).
    • Handle: RePEc:eee:chieco:v:87:y:2024:i:c:s1043951x24001366
    DOI: 10.1016/j.chieco.2024.102247
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    More about this item

    Keywords

    E-commerce development; Subjective well-being; National Rural E-commerce Comprehensive Demonstration County; Digital divide; Rural China;
    All these keywords.

    JEL classification:

    • I31 - Health, Education, and Welfare - - Welfare, Well-Being, and Poverty - - - General Welfare, Well-Being
    • R28 - Urban, Rural, Regional, Real Estate, and Transportation Economics - - Household Analysis - - - Government Policy
    • O38 - Economic Development, Innovation, Technological Change, and Growth - - Innovation; Research and Development; Technological Change; Intellectual Property Rights - - - Government Policy

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