IDEAS home Printed from https://ideas.repec.org/a/bla/agecon/v57y2026i3ne70113.html

Village E‐Commerce Penetration and Agricultural Enterprise Growth: Evidence From China

Author

Listed:
  • Xiaoyong Xiao
  • Yong Xia
  • Wuyang Hu
  • Qingsong Tian

Abstract

E‐commerce is increasingly becoming a mainstream model for business development worldwide. Utilizing comprehensive business registration data and accounting data for agricultural enterprises in China, we take China's National Rural E‐commerce Comprehensive Demonstration Policy as a quasi‐natural experiment to investigate the effects of e‐commerce penetration in villages on agricultural enterprise growth and the underlying mechanisms. We find that e‐commerce penetration in villages significantly boosts the number of agricultural enterprises, a result that remains robust across various checks. Further analysis indicates that e‐commerce penetration in villages also enhances the economic performance of agricultural enterprises and fosters their innovation activities. Mechanism analysis reveals that e‐commerce penetration boosts agricultural enterprise growth by enhancing the entrepreneurial ecosystem, as evidenced by broadening sales channels for agricultural products, enriching agricultural inputs, and expanding financial access. This study offers valuable insights for China and other developing countries on leveraging e‐commerce to promote agricultural enterprise growth.

Suggested Citation

  • Xiaoyong Xiao & Yong Xia & Wuyang Hu & Qingsong Tian, 2026. "Village E‐Commerce Penetration and Agricultural Enterprise Growth: Evidence From China," Agricultural Economics, International Association of Agricultural Economists, vol. 57(3), May.
    • Handle: RePEc:bla:agecon:v:57:y:2026:i:3:n:e70113
    DOI: 10.1111/agec.70113
    as

    Download full text from publisher

    File URL: https://doi.org/10.1111/agec.70113
    Download Restriction: no
    File URL: https://libkey.io/10.1111/agec.70113?utm_source=ideas
    LibKey link: if access is restricted and if your library uses this service, LibKey will redirect you to where you can use your library subscription to access this item
    ---><---

    References listed on IDEAS

    as
    1. Joshua D. Angrist & Jörn-Steffen Pischke, 2009. "Mostly Harmless Econometrics: An Empiricist's Companion," Economics Books, Princeton University Press, edition 1, number 8769, December.
    2. C. C. De Lauwere, 2005. "The role of agricultural entrepreneurship in Dutch agriculture of today," Agricultural Economics, International Association of Agricultural Economists, vol. 33(2), pages 229-238, September.
    3. Michael R. Carter, 2022. "Can digitally‐enabled financial instruments secure an inclusive agricultural transformation?," Agricultural Economics, International Association of Agricultural Economists, vol. 53(6), pages 953-967, November.
    4. Schoneveld, George C., 2022. "Transforming food systems through inclusive agribusiness," World Development, Elsevier, vol. 158(C).
    5. Xiaotong Liu & Yi Ma & Yuanqing Li & Bin Li & Yuhuan Xia, 2026. "Shaping learning aspirations: the influence of E-commerce clusters on rural entrepreneurs," Electronic Commerce Research, Springer, vol. 26(2), pages 1919-1948, April.
    6. Elinor Benami & Michael R. Carter, 2021. "Can digital technologies reshape rural microfinance? Implications for savings, credit, & insurance," Applied Economic Perspectives and Policy, John Wiley & Sons, vol. 43(4), pages 1196-1220, December.
    7. Theodoraki, Christina & Dana, Léo-Paul & Caputo, Andrea, 2022. "Building sustainable entrepreneurial ecosystems: A holistic approach," Journal of Business Research, Elsevier, vol. 140(C), pages 346-360.
    8. Bu, Di & Liao, Yin, 2022. "Land property rights and rural enterprise growth: Evidence from land titling reform in China," Journal of Development Economics, Elsevier, vol. 157(C).
    9. Jin, Xin & Ma, Baojie & Zhang, Haifeng, 2023. "Impact of fast internet access on employment: Evidence from a broadband expansion in China," China Economic Review, Elsevier, vol. 81(C).
    10. Raj Chetty & Adam Looney & Kory Kroft, 2009. "Salience and Taxation: Theory and Evidence," American Economic Review, American Economic Association, vol. 99(4), pages 1145-1177, September.
    11. Joseph G. Altonji & Todd E. Elder & Christopher R. Taber, 2005. "Selection on Observed and Unobserved Variables: Assessing the Effectiveness of Catholic Schools," Journal of Political Economy, University of Chicago Press, vol. 113(1), pages 151-184, February.
    12. Li, Pei & Lu, Yi & Wang, Jin, 2016. "Does flattening government improve economic performance? Evidence from China," Journal of Development Economics, Elsevier, vol. 123(C), pages 18-37.
    13. Qiuxia Qin & Hongdong Guo & Xinjie Shi & Kevin Chen, 2023. "Rural E‐commerce and County Economic Development in China," China & World Economy, Institute of World Economics and Politics, Chinese Academy of Social Sciences, vol. 31(5), pages 26-60, September.
    14. Jean Kinsey, 2000. "A Faster, Leaner, Supply Chain: New Uses of Information Technology," American Journal of Agricultural Economics, Agricultural and Applied Economics Association, vol. 82(5), pages 1123-1129.
    15. Katharina Grabrucker & Michael Grimm, 2021. "Is There a Rainbow after the Rain? How Do Agricultural Shocks Affect Non‐Farm Enterprises? Evidence from Thailand," American Journal of Agricultural Economics, John Wiley & Sons, vol. 103(5), pages 1612-1636, October.
    16. Georgeanne M. Artz & Younjun Kim & Peter F. Orazem & Peter J. Han, 2021. "Which Small Towns Attract Start‐Ups and Why? Twenty Years of Evidence from Iowa," American Journal of Agricultural Economics, John Wiley & Sons, vol. 103(2), pages 702-720, March.
    17. Johan Hombert & Antoinette Schoar & David Sraer & David Thesmar, 2020. "Can Unemployment Insurance Spur Entrepreneurial Activity? Evidence from France," Journal of Finance, American Finance Association, vol. 75(3), pages 1247-1285, June.
    18. Christina Theodoraki & Léo-Paul Dana & Andrea Caputo, 2022. "Building sustainable entrepreneurial ecosystems: A holistic approach," Post-Print hal-04676716, HAL.
    19. Marianne Bertrand & Esther Duflo & Sendhil Mullainathan, 2004. "How Much Should We Trust Differences-In-Differences Estimates?," The Quarterly Journal of Economics, President and Fellows of Harvard College, vol. 119(1), pages 249-275.
    20. Charles A. Towe & Mitchell J. Morehart, 2009. "Credit Constraints: Their Existence, Determinants, and Implications for U.S. Farm and Nonfarm Sole Proprietorships," American Journal of Agricultural Economics, Agricultural and Applied Economics Association, vol. 91(1), pages 275-289.
    21. Jiafeng Chen & Jonathan Roth, 2024. "Logs with Zeros? Some Problems and Solutions," The Quarterly Journal of Economics, President and Fellows of Harvard College, vol. 139(2), pages 891-936.
    22. Weisong Cheng & Jingrun Shao & Liu Cui & Wenhao Song, 2025. "The Impact of Highway Construction on the Profits of Agricultural Enterprises: Evidence From China," Agricultural Economics, International Association of Agricultural Economists, vol. 56(6), pages 856-873, November.
    23. Duan, Wenqi & Jiang, Mingming & Qi, Jianhong, 2024. "Poverty or pollution: The environmental cost of E-commerce for poverty reduction in China," Journal of Environmental Economics and Management, Elsevier, vol. 127(C).
    24. Goldsmith, Arthur, 1985. "The private sector and rural development: Can agribusiness help the small farmer?," World Development, Elsevier, vol. 13(10-11), pages 1125-1138.
    25. repec:oup:ajagec:v:99:y:2017:i:1:p:1-18. is not listed on IDEAS
    26. Callaway, Brantly & Sant’Anna, Pedro H.C., 2021. "Difference-in-Differences with multiple time periods," Journal of Econometrics, Elsevier, vol. 225(2), pages 200-230.
    27. 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).
    Full references (including those not matched with items on IDEAS)

    Most related items

    These are the items that most often cite the same works as this one and are cited by the same works as this one.
    1. Shixian Zhai & Peng Wang & Chao Peng, 2026. "Impact of the National Rural E‐Commerce Comprehensive Demonstration Policy on Rural Labour Force Participation," Australian Journal of Agricultural and Resource Economics, Australian Agricultural and Resource Economics Society, vol. 70(1), pages 132-146, January.
    2. Guo, Jingyuan & Deng, Kent, 2024. "Laying off old guards to rebuild state capacity: Deng Xiaoping’s bloodless coup d’etat in post-Mao China, 1980-2000," Economic History Working Papers 126083, London School of Economics and Political Science, Department of Economic History.
    3. Liu, Jiayu & Kong, Ningning Nicole & Gao, Yi, 2026. "Assessing spatial development footprint of urban areas surrounding new airport terminal infrastructure," Journal of Air Transport Management, Elsevier, vol. 132(C).
    4. Niu, Geng & Jin, XiaoShu & Wang, Qi & Zhou, Yang, 2022. "Broadband infrastructure and digital financial inclusion in rural China," China Economic Review, Elsevier, vol. 76(C).
    5. repec:ehl:lserod:126083 is not listed on IDEAS
    6. Zhong, Shen & Zhou, Zhicheng & Gao, Wei, 2025. "Impact of regional finance reform and innovation policies on green innovation in pilot cities: A quasi-natural experiment," Economic Analysis and Policy, Elsevier, vol. 85(C), pages 888-911.
    7. Zhang, Li & Xie, Lunyu & Zheng, Xinye, 2023. "Across a few prohibitive miles: The impact of the Anti-Poverty Relocation Program in China," Journal of Development Economics, Elsevier, vol. 160(C).
    8. Lin, Xin & Hui, Eddie Chi-man & Cong, Zhenglong & Shen, Jianfu, 2026. "Solving coordination failures: Collective land transfer rights and rural entrepreneurship," Journal of Development Economics, Elsevier, vol. 178(C).
    9. Arne Henningsen & Guy Low & David Wuepper & Tobias Dalhaus & Hugo Storm & Dagim Belay & Stefan Hirsch, 2026. "Estimating Causal Effects With Observational Data: Guidelines for Agricultural and Applied Economists," Journal of Agricultural Economics, Wiley Blackwell, vol. 77(2), pages 356-382, June.
    10. Yuheng Lin & Dooruj Rambaccussing & Yu Zhu, 2024. "The impact of international students in the UK on the cultural goods trade," French Stata Users' Group Meetings 2024 29, Stata Users Group.
    11. Wang, Lisha & Pan, Minjie & Qian, Xinlei & Lv, Kangjuan, 2025. "Do specialized courts matter? Environmental judiciary and corporate emissions in China," Energy Policy, Elsevier, vol. 199(C).
    12. Xu, Guangyu & Chen, Huang, 2025. "Inclusive growth dilemma: Weighing the pros and cons of land market reform," China Economic Review, Elsevier, vol. 91(C).
    13. Maclean, J. Catherine & Pichler, Stefan & Ziebarth, Nicolas R., 2020. "Mandated Sick Pay: Coverage, Utilization, and Welfare Effects," IZA Discussion Papers 13132, IZA Network @ LISER.
    14. Rahi Abouk & Keshar M. Ghimire & Johanna Catherine Maclean & David Powell, 2023. "Pain Management and Work Capacity: Evidence From Workers’ Compensation and Marijuana Legalization," Journal of Policy Analysis and Management, John Wiley & Sons, Ltd., vol. 42(3), pages 737-770, June.
    15. Zheng, Xuemei & Menezes, Flavio & Zheng, Xiaofeng & Wu, Chengkuan, 2022. "An empirical assessment of the impact of subsidies on EV adoption in China: A difference-in-differences approach," Transportation Research Part A: Policy and Practice, Elsevier, vol. 162(C), pages 121-136.
    16. Lutfah Ariana & Rimawan Pradiptyo & Evi Noor Afifah, 2026. "Assessing the impact of public–private partnership adoption on regional economic growth in Asia," International Economics and Economic Policy, Springer, vol. 23(2), pages 1-26, May.
    17. Ashesh Rambachan & Jonathan Roth, 2026. "Design-Based Uncertainty for Quasi-Experiments," Journal of the American Statistical Association, Taylor & Francis Journals, vol. 121(553), pages 477-491, January.
    18. Dong, Zhanyu & Cai, Jiayi & Li, Xuchao & Luan, Mengna, 2025. "Firm-level impacts and recovery dynamics following a public health crisis: Lessons from China’s SARS experience," Journal of Asian Economics, Elsevier, vol. 98(C).
    19. Myoung-jae Lee & Yasuyuki Sawada, 2020. "Review on Difference in Differences," Korean Economic Review, Korean Economic Association, vol. 36, pages 135-173.
    20. Li, Tongxia & Ang, Tze Chuan ‘Chewie’ & Lu, Chun, 2023. "Employment protection and the provision of trade credit," Journal of Banking & Finance, Elsevier, vol. 155(C).
    21. Shiko Maruyama & Sayaka Nakamura, 2025. "Wholesome Lunch to the Whole Classroom: Short‐ and Longer‐Term Effects on Early Teenagers' Weight," Health Economics, John Wiley & Sons, Ltd., vol. 34(7), pages 1255-1273, July.

    More about this item

    Statistics

    Access and download statistics

    Corrections

    All material on this site has been provided by the respective publishers and authors. You can help correct errors and omissions. When requesting a correction, please mention this item's handle: RePEc:bla:agecon:v:57:y:2026:i:3:n:e70113. See general information about how to correct material in RePEc.

    If you have authored this item and are not yet registered with RePEc, we encourage you to do it here. This allows to link your profile to this item. It also allows you to accept potential citations to this item that we are uncertain about.

    If CitEc recognized a bibliographic reference but did not link an item in RePEc to it, you can help with this form .

    If you know of missing items citing this one, you can help us creating those links by adding the relevant references in the same way as above, for each refering item. If you are a registered author of this item, you may also want to check the "citations" tab in your RePEc Author Service profile, as there may be some citations waiting for confirmation.

    For technical questions regarding this item, or to correct its authors, title, abstract, bibliographic or download information, contact: Wiley Content Delivery (email available below). General contact details of provider: https://edirc.repec.org/data/iaaeeea.html .

    Please note that corrections may take a couple of weeks to filter through the various RePEc services.

    IDEAS is a RePEc service. RePEc uses bibliographic data supplied by the respective publishers.