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FinTech adoption and the clustered development of rural e-commerce: Evidence from Taobao Village

Author

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  • Su, Tong
  • Tao, Yanyang
  • Wang, Jingyi

Abstract

This article uses county-level, township-level, and village-level panel data covering the entire country to prove the role of FinTech adoption in promoting the development of rural e-commerce. At the same time, we use the distance to the nearest Guan Temple to the village as an instrumental variable to further prove the positive role of FinTech adoption while excluding endogeneity. The clustered development model of rural e-commerce found in selected provinces in the literature has also been proven by us at the national level. At the same time, we found that the aggregation effect inter-county, intra-county, and intra-town has gradually increased, which also helps us make a reasonable explanation on the role of FinTech. To the best of our knowledge, this is the first paper to study the role of FinTech adoption on rural e-commerce. Utilizing satellite data combined with statistics from the bureau, we constructed an annual urban-rural classification index with a square kilometer precision covering the entire country.

Suggested Citation

  • Su, Tong & Tao, Yanyang & Wang, Jingyi, 2024. "FinTech adoption and the clustered development of rural e-commerce: Evidence from Taobao Village," Pacific-Basin Finance Journal, Elsevier, vol. 85(C).
    • Handle: RePEc:eee:pacfin:v:85:y:2024:i:c:s0927538x24000660
    DOI: 10.1016/j.pacfin.2024.102315
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    3. Liu, Fei & Zheng, Di & Zhao, Dongyang & Wen, Bo, 2026. "Spatiotemporal differentiation and evolution of associated networks of China's agricultural innovation ecosystem," Agricultural Systems, Elsevier, vol. 231(C).
    4. Liu, Juecen & Tang, Mengxuan & Goodell, John W. & Hu, Yang, 2025. "Informal financing access: Can fintech development affect trade credit access?," Finance Research Letters, Elsevier, vol. 71(C).
    5. Tang, Mengxuan & Hu, Yang & Hou, Yang (Greg) & Oxley, Les & Goodell, John W., 2025. "Fintech development and corporate financial policy: Evidence from corporate financing and investment," Journal of International Money and Finance, Elsevier, vol. 157(C).
    6. repec:jaf:journl:v:15:y:2024:i:2:n:823 is not listed on IDEAS
    7. Qi, Yifan & Gao, Yasi & Wu, Yanghui, 2025. "E-commerce integration, financial services enhancement, and rural revitalization: A quasi-natural experiment based on the comprehensive demonstration county pilot of e-commerce in rural areas," Finance Research Letters, Elsevier, vol. 85(PD).
    8. Yarong Shi & Yahan Jin, 2025. "How Fintech Impacts Urban Economic Resilience: A Perspective on the Empowerment of Digital Inclusive Finance," Sustainability, MDPI, vol. 17(17), pages 1-24, August.

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