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Can the development of rural E-commerce narrow the urban-rural income gap? Evidence from a quasi-natural experiment in national comprehensive demonstration counties for E-commerce

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  • Su, Yajuan
  • Ren, Ruiying

Abstract

With the rapid development of the digital economy, rural e-commerce has become a key driver for agricultural transformation and narrowing the urban-rural income gap. Using the "Comprehensive Demonstration Counties for E-commerce into Rural Areas" policy as a quasi-natural experiment and panel data from 2008–2023, this study employs a two-way fixed effects model to analyze the impact mechanism of rural e-commerce on urban-rural income disparities. Results show that rural e-commerce significantly reduces the income gap, with internet application levels acting as a partial mediator, and stronger effects observed in regions with higher fixed asset investment.

Suggested Citation

  • Su, Yajuan & Ren, Ruiying, 2025. "Can the development of rural E-commerce narrow the urban-rural income gap? Evidence from a quasi-natural experiment in national comprehensive demonstration counties for E-commerce," Finance Research Letters, Elsevier, vol. 85(PD).
    • Handle: RePEc:eee:finlet:v:85:y:2025:i:pd:s1544612325014710
    DOI: 10.1016/j.frl.2025.108216
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