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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. 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.
    2. 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.
    3. 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.
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