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Can the E-commercialization improve residents’ income? --Evidence from “Taobao Counties” in China

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  • Tang, Ke
  • Xiong, Qiaoqin
  • Zhang, Fengyu

Abstract

From the perspective of the e-commercialization of a county economy, this paper investigates how industrial clusters represented by “Taobao Villages/Towns” affect residents' per capita income. Applying the difference-in-difference (DID) and propensity score matching (PSM) methods, we show that urban residents' per capita disposable income in Taobao Counties is, on average, approximately RMB 2680 higher than that of non-Taobao Counties, significant at the 95% level. However, e-commercialization has only a slight or nonsignificant effect on rural residents’ per capita income. We propose mechanisms for this stylized effect and discuss corresponding policy implications.

Suggested Citation

  • Tang, Ke & Xiong, Qiaoqin & Zhang, Fengyu, 2022. "Can the E-commercialization improve residents’ income? --Evidence from “Taobao Counties” in China," International Review of Economics & Finance, Elsevier, vol. 78(C), pages 540-553.
    • Handle: RePEc:eee:reveco:v:78:y:2022:i:c:p:540-553
    DOI: 10.1016/j.iref.2021.12.019
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    References listed on IDEAS

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    1. Vandenberghe, V. & Robin, S., 2004. "Evaluating the effectiveness of private education across countries: a comparison of methods," Labour Economics, Elsevier, vol. 11(4), pages 487-506, August.
    2. Victor Couture & Benjamin Faber & Yizhen Gu & Lizhi Liu, 2021. "Connecting the Countryside via E-Commerce: Evidence from China," American Economic Review: Insights, American Economic Association, vol. 3(1), pages 35-50, March.
    3. Marco Caliendo & Sabine Kopeinig, 2008. "Some Practical Guidance For The Implementation Of Propensity Score Matching," Journal of Economic Surveys, Wiley Blackwell, vol. 22(1), pages 31-72, February.
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    2. Liu, Sheng & Wei, Xiahai & Du, Yuhong, 2025. "Can rural digital economy mitigate local population outflow: Evidence from China," Journal of Asian Economics, Elsevier, vol. 99(C).
    3. Wang, Lei & Sun, Yongming, 2025. "Digital dividends? Rural E-commerce policy and urban-rural income disparity in China," Telecommunications Policy, Elsevier, vol. 49(10).
    4. 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.
    5. Tao, Jiancong & Wang, Zhe & Xu, Yujie & Zhao, Boyu & Liu, Jiaqi, 2024. "Can the digital economy boost rural residents’ income? Evidence from China based on the spatial Durbin model," Economic Analysis and Policy, Elsevier, vol. 81(C), pages 856-872.
    6. Bing He & Da Xu & Guoqi Nan & Xiaoyu Zhang & Xiuxiu Yu, 2024. "Does the cross‐border e‐commerce comprehensive pilot zones policy affect the urban–rural income gap in China?," American Journal of Economics and Sociology, Wiley Blackwell, vol. 83(4), pages 773-792, September.
    7. Gao, Yi & Yang, Jing & Zhao, Jingzhu & Peng, Haorong, 2025. "Impact of developmental social policy on household welfare: Evidence from China’s comprehensive demonstration policy for e-commerce in rural areas," Economic Analysis and Policy, Elsevier, vol. 86(C), pages 1820-1838.
    8. He, Junyi & He, Feng, 2025. "Acquisition of financial resources, dynamic capabilities, and embedding in corporate ecosystem platforms," Finance Research Letters, Elsevier, vol. 86(PB).

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