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E-Commerce Participation and Household Income Growth in Taobao Villages

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  • Luo,Xubei
  • Niu,Chiyu

Abstract

E-commerce has developed rapidly in China, and Taobao Villages, which are villages significantly engaged in e-commerce, are prospering in rural areas. E-commerce is fostering entrepreneurship and creating flexible and inclusive employment opportunities, including for women and youth. This paper examines the role of e-commerce participation in household income growth, drawing from a survey of representative Taobao Villages in 2017. The paper presents three main findings. First, e-commerce participation is not random: participation is higher among the households with younger household heads, with secondary education, particularly those with technical and vocational education, urban work experience, and knowledge of e-commerce. Second, e-commerce participation is associated with higher household income, with some indications that participation has a strong positive effect on household incomes. Third, e-commerce appears to yield benefits that are broadly shared among participants in an equitable way in Taobao Villages.

Suggested Citation

  • Luo,Xubei & Niu,Chiyu, 2019. "E-Commerce Participation and Household Income Growth in Taobao Villages," Policy Research Working Paper Series 8811, The World Bank.
    • Handle: RePEc:wbk:wbrwps:8811
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    Cited by:

    1. Shen, Zhiyang & Wang, Songkai & Boussemart, Jean-Philippe & Hao, Yu, 2022. "Digital transition and green growth in Chinese agriculture," Technological Forecasting and Social Change, Elsevier, vol. 181(C).
    2. 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.
    3. Shiyi Chen & Wanlin Liu & Hong Song & Qing Zhang, 2024. "Government‐led e‐commerce expansion project and rural household income: Evidence and mechanisms," Economic Inquiry, Western Economic Association International, vol. 62(1), pages 150-174, January.
    4. Li, Xiaokang & Guo, Hongdong & Jin, Songqing & Ma, Wanglin & Zeng, Yiwu, 2021. "Do farmers gain internet dividends from E-commerce adoption? Evidence from China," Food Policy, Elsevier, vol. 101(C).
    5. 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.
    6. Jiang, Hongli & Hu, Wenjie & Guo, Ziqing & Hou, Yan & Chen, Tingqiang, 2024. "E-commerce development and carbon emission efficiency: Evidence from 240 cities in China," Economic Analysis and Policy, Elsevier, vol. 82(C), pages 586-603.
    7. Chen, Chen & Gan, Christopher & Li, Junpeng & Lu, Yao & Rahut, Dil, 2023. "Linking farmers to markets: Does cooperative membership facilitate e-commerce adoption and income growth in rural China?," Economic Analysis and Policy, Elsevier, vol. 80(C), pages 1155-1170.
    8. Jikun Huang & Lanlan Su & Qiwang Huang & Xinyu Liu, 2022. "Facilitating inclusive ICT application and e‐Commerce development in rural China," Agricultural Economics, International Association of Agricultural Economists, vol. 53(6), pages 938-952, November.
    9. 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.
    10. Nawab Khan & Ram L. Ray & Hazem S. Kassem & Farhat Ullah Khan & Muhammad Ihtisham & Shemei Zhang, 2022. "Does the Adoption of Mobile Internet Technology Promote Wheat Productivity? Evidence from Rural Farmers," Sustainability, MDPI, vol. 14(13), pages 1-15, June.
    11. 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).
    12. Xiaojing Li & Apurbo Sarkar & Xianli Xia & Waqar Hussain Memon, 2021. "Village Environment, Capital Endowment, and Farmers’ Participation in E-Commerce Sales Behavior: A Demand Observable Bivariate Probit Model Approach," Agriculture, MDPI, vol. 11(9), pages 1-20, September.
    13. Yan Mei & Danling Mao & Yuhui Lu & Wei Chu, 2020. "Effects and mechanisms of rural E‐commerce clusters on households' entrepreneurship behavior in China," Growth and Change, Wiley Blackwell, vol. 51(4), pages 1588-1610, December.
    14. Yong Qin & Yingfeng Fang, 2022. "The Effects of E‐Commerce on Regional Poverty Reduction: Evidence from China's Rural E‐Commerce Demonstration County Program," China & World Economy, Institute of World Economics and Politics, Chinese Academy of Social Sciences, vol. 30(3), pages 161-186, May.

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