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Revenue-increasing effect of rural e-commerce: A perspective of farmers' market integration and employment growth

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  • Li, Wei
  • He, Weiwei

Abstract

This study uses village and household matching information from the 2018 China Labor-force Dynamic Survey to analyze the impact of rural e-commerce on farmers’ revenue. The outcomes of the baseline regression and robustness discussions show that rural e-commerce greatly improved farmers’ revenue. After solving endogeneity problems in the model using rural clan power as the instrumental variable, the influence of e-commerce on farmers’ revenue is still significantly positive. Further analysis suggests that rural e-commerce directly affects farmers’ revenue by promoting farmers' market integration, and indirectly affects it by expanding affiliated industries that can promote employment growth. Furthermore, in the case of a higher level of transportation infrastructure development, the impact of rural e-commerce-affiliated industries on farmers’ revenue will be greater. However, not all farmers receive the same benefits from e-commerce. Farmers with more human capital receive more benefits from e-commerce. Our results have important policy implications for developing countries that hope to grow farmers’ revenue and rural development through e-commerce.

Suggested Citation

  • Li, Wei & He, Weiwei, 2024. "Revenue-increasing effect of rural e-commerce: A perspective of farmers' market integration and employment growth," Economic Analysis and Policy, Elsevier, vol. 81(C), pages 482-493.
    • Handle: RePEc:eee:ecanpo:v:81:y:2024:i:c:p:482-493
    DOI: 10.1016/j.eap.2023.12.015
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    References listed on IDEAS

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    Cited by:

    1. Xiaojing Li & Yanhua Li & Zhe Chen, 2024. "Impact of Rural E-Commerce Participation on Farmers’ Household Development Resilience: Evidence from 1229 Farmers in China," Agriculture, MDPI, vol. 14(5), pages 1-21, April.
    2. Huwei Wen & Yulin Huang & Jiayi Shi, 2024. "Revitalizing Agricultural Economy Through Rural E-Commerce? Experience from China’s Revolutionary Old Areas," Agriculture, MDPI, vol. 14(11), pages 1-19, November.
    3. Shanhu Zhang & Jinxiu Yang & Yun Shen & Zhuoli Li, 2024. "How Do Digital Capabilities Impact the Sustained Growth of Entrepreneurial Income: Evidence from Chinese Farmer Entrepreneurs," Sustainability, MDPI, vol. 16(17), pages 1-24, August.
    4. Ling Wang & Jianjun Su & Hailan Yang & Can Xie, 2024. "Multidimensional Measurement and Temporal and Spatial Interaction Characteristics of Rural E-Commerce Development Capacity in the Context of Rural Revitalization," Sustainability, MDPI, vol. 16(23), pages 1-25, November.
    5. Lyubing, Feng & Lijun, Zang & Xianguo, Yao, 2024. "The impact of internet use on entrepreneurial behavior and income: Evidence from Chinese rural households," Journal of Asian Economics, Elsevier, vol. 93(C).

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    More about this item

    Keywords

    Rural e-commerce; Farmers’ revenue; Farmers' market integration; Employment growth; Transportation infrastructure;
    All these keywords.

    JEL classification:

    • Q13 - Agricultural and Natural Resource Economics; Environmental and Ecological Economics - - Agriculture - - - Agricultural Markets and Marketing; Cooperatives; Agribusiness
    • Q12 - Agricultural and Natural Resource Economics; Environmental and Ecological Economics - - Agriculture - - - Micro Analysis of Farm Firms, Farm Households, and Farm Input Markets
    • C5 - Mathematical and Quantitative Methods - - Econometric Modeling

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