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

Author

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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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    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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