IDEAS home Printed from https://ideas.repec.org/a/gam/jsusta/v17y2025i9p3921-d1643405.html
   My bibliography  Save this article

The Impact of Rural E-Commerce on Farmers’ Income Gap: Implications for Farmers’ Sustainable Development

Author

Listed:
  • Hailan Qiu

    (School of Economics and Management, Jiangxi Agricultural University, Nanchang 330045, China
    Research Center for the Three Rural Issues, Jiangxi Agricultural University, Nanchang 330045, China)

  • Hanyun Deng

    (School of Economics and Management, Jiangxi Agricultural University, Nanchang 330045, China)

  • Miaomiao Lu

    (School of Economics and Management, Jiangxi Agricultural University, Nanchang 330045, China)

  • Lijing Luo

    (School of Economics and Management, Jiangxi Agricultural University, Nanchang 330045, China)

  • Xiaozhi Chen

    (South China Institute of Innovative Finance, Guangdong University of Finance, Guangzhou 510521, China)

  • Zhipeng Wang

    (School of Economics and Management, Jiangxi Agricultural University, Nanchang 330045, China
    Research Center for the Three Rural Issues, Jiangxi Agricultural University, Nanchang 330045, China)

Abstract

Income inequality impedes rural economic development. As the digital economy advances, e-commerce (EC) offers a novel solution to reduce rural income inequality. Based on the framework of the equality of opportunity theory, this research utilizes data from China Rural Revitalization Survey, using the RIF model and mediation effect model to investigate the influence and mechanisms of e-commerce operations (EOs) on the farmers’ income gap (FIG), while also analyzing the heterogeneity of EO’s effects on the FIG. Consequently, the impact of the varying scales and modes of EOs on the FIG is further examined. The findings indicate that EO can substantially diminish the FIG, as corroborated by robustness and endogeneity tests. The findings of the intermediate effect indicate that EO diminishes the FIG by reducing the disparity in labor endowment. The heterogeneity study results indicated that EOs are more effective in reducing the FIG in western China, major grain-producing areas, and mountainous areas. Further discussion reveals a stronger reduction effect of large-scale and platform EC. This study provides micro-level evidence that the digital economy empowers farmers for sustainable development and prosperity. The government should improve rural EC support and create a mechanism for disadvantaged rural populations. To reduce EC development discrepancies and promote farmer equity, specific assistance programs for undeveloped regions are needed. Local governments can also strengthen skill training programs for farmers, especially low-income ones, to boost labor skills. Finally, they can assist rural EC’s transformation to large scale and flat, maximize its role in employment, and narrow the FIG.

Suggested Citation

  • Hailan Qiu & Hanyun Deng & Miaomiao Lu & Lijing Luo & Xiaozhi Chen & Zhipeng Wang, 2025. "The Impact of Rural E-Commerce on Farmers’ Income Gap: Implications for Farmers’ Sustainable Development," Sustainability, MDPI, vol. 17(9), pages 1-23, April.
  • Handle: RePEc:gam:jsusta:v:17:y:2025:i:9:p:3921-:d:1643405
    as

    Download full text from publisher

    File URL: https://www.mdpi.com/2071-1050/17/9/3921/pdf
    Download Restriction: no

    File URL: https://www.mdpi.com/2071-1050/17/9/3921/
    Download Restriction: no
    ---><---

    References listed on IDEAS

    as
    1. Marrero, Gustavo A. & Rodríguez, Juan G., 2013. "Inequality of opportunity and growth," Journal of Development Economics, Elsevier, vol. 104(C), pages 107-122.
    2. Hongpeng Guo & Yang Yang & Chulin Pan & Shuang Xu & Nan Yan & Qingyong Lei, 2022. "Study on the Impact of Income Gap on Health Level of Rural Residents in China," IJERPH, MDPI, vol. 19(13), pages 1-17, June.
    3. Bo Liu & Jing Zhou, 2023. "Digital Literacy, Farmers’ Income Increase and Rural Internal Income Gap," Sustainability, MDPI, vol. 15(14), pages 1-13, July.
    4. Li, Xiaokang & Guo, Hongdong & Jin, Songqing & Ma, Wanglin & Zeng, Yiwu, 2021. "Do farmers gain internet dividends from E-commerce adoption? Evidence from China," Food Policy, Elsevier, vol. 101(C).
    5. Bauer, Johannes M., 2018. "The Internet and income inequality: Socio-economic challenges in a hyperconnected society," Telecommunications Policy, Elsevier, vol. 42(4), pages 333-343.
    6. Yue Cheng & Dong Zheng, 2023. "Does the Digital Economy Promote Coordinated Urban–Rural Development? Evidence from China," Sustainability, MDPI, vol. 15(6), pages 1-20, March.
    7. 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.
    8. Junsen Zhang, 2021. "A Survey on Income Inequality in China," Journal of Economic Literature, American Economic Association, vol. 59(4), pages 1191-1239, December.
    9. Gao, Yanyan & Zang, Leizhen & Sun, Jun, 2018. "Does computer penetration increase farmers’ income? An empirical study from China," Telecommunications Policy, Elsevier, vol. 42(5), pages 345-360.
    10. Sindy Liu & Patsy Perry & Gregory Gadzinski, 2019. "The implications of digital marketing on WeChat for luxury fashion brands in China," Journal of Brand Management, Palgrave Macmillan, vol. 26(4), pages 395-409, July.
    11. Luo, Chuliang & Li, Shi & Sicular, Terry, 2020. "The long-term evolution of national income inequality and rural poverty in China," China Economic Review, Elsevier, vol. 62(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. Lei-Ju Qiu & Shun-Bin Zhong & Bao-Wen Sun & Yu Song & Xiao-Hua Chen, 2021. "Is internet penetration narrowing the rural–urban income inequality? A cross-regional study of China," Quality & Quantity: International Journal of Methodology, Springer, vol. 55(5), pages 1795-1814, October.
    2. Jianxu Liu & Xiaoqing Li & Shutong Liu & Sanzidur Rahman & Songsak Sriboonchitta, 2022. "Addressing Rural–Urban Income Gap in China through Farmers’ Education and Agricultural Productivity Growth via Mediation and Interaction Effects," Agriculture, MDPI, vol. 12(11), pages 1-23, November.
    3. Xuefeng Hou & Dianfeng Zhang & Liyuan Fu & Fu Zeng & Qing Wang, 2023. "Spatio-Temporal Evolution and Influencing Factors of Coupling Coordination Degree between Urban–Rural Integration and Digital Economy," Sustainability, MDPI, vol. 15(12), pages 1-26, June.
    4. Zhang, Hong & Wang, Yuejing & Wang, Xiaoquan, 2024. "The impact of financial deepening on agricultural production: A household-level analysis of BigTech finance," Economic Analysis and Policy, Elsevier, vol. 84(C), pages 57-77.
    5. Yitao Wang & Weidong Wang & Xuemei Jiang & Hui Wang, 2024. "The Impact of Farmers’ E-Commerce Adoption on Land Transfer: Evidence from Ten Provinces across China," Land, MDPI, vol. 13(7), pages 1-17, July.
    6. Chengyou Li & Zhouhao Sha & Tao Sun, 2023. "Rural Households’ Internet Use on Common Prosperity: Evidence from the Chinese Social Survey," Social Indicators Research: An International and Interdisciplinary Journal for Quality-of-Life Measurement, Springer, vol. 170(3), pages 797-823, December.
    7. Tang, Jianjun & Gong, Jiaowei & Ma, Wanglin & Rahut, Dil Bahadur, 2022. "Narrowing urban–rural income gap in China: The role of the targeted poverty alleviation program," Economic Analysis and Policy, Elsevier, vol. 75(C), pages 74-90.
    8. Yu, Binbin, 2022. "The Impact of the Internet on Industrial Green Productivity: Evidence from China," Technological Forecasting and Social Change, Elsevier, vol. 177(C).
    9. Huang, Zengjian & Wang, Leyi & Meng, Jing, 2024. "Does rural e-commerce improve the economic resilience of family farms?," International Review of Economics & Finance, Elsevier, vol. 95(C).
    10. Haoyu Shu & Jianping Zha & Rong Ma & Minqing Yan, 2024. "Chance or challenge? Understanding how the Internet affects the nexus between tourism and urban-rural income inequality," Tourism Economics, , vol. 30(8), pages 2089-2110, December.
    11. Xiao Liu & Zhenyu Wang & Xiaoyan Han, 2024. "The Impact of Digital Literacy on Farmers’ Green Production Behavior: Mediating Effects Based on Ecological Cognition," Sustainability, MDPI, vol. 16(17), pages 1-20, August.
    12. Pedro Salas-Rojo & Juan Gabriel Rodríguez, 2022. "Inheritances and wealth inequality: a machine learning approach," The Journal of Economic Inequality, Springer;Society for the Study of Economic Inequality, vol. 20(1), pages 27-51, March.
    13. Zhang, Cheng & Weng, Xiyan, 2024. "Can broadband infrastructure construction promote equality of opportunity? Evidence from a quasi-natural experiment in China☆," Journal of Asian Economics, Elsevier, vol. 93(C).
    14. Neidhöfer, Guido & Serrano, Joaquín & Gasparini, Leonardo, 2018. "Educational inequality and intergenerational mobility in Latin America: A new database," Journal of Development Economics, Elsevier, vol. 134(C), pages 329-349.
    15. European Commission, 2018. "Tax Policies in the European Union: 2018 Survey," Taxation Survey 2018, Directorate General Taxation and Customs Union, European Commission.
    16. David Pérez-Mesa & à ngel S. Marrero, 2024. "Adult health and inequality of opportunity in Spain," Working Papers 671, ECINEQ, Society for the Study of Economic Inequality.
    17. Yulong Jie & Shuigen Hu & Siling Zhu & Lieen Weng, 2024. "How Digitalization and Its Context Affect the Urban–Rural Income Gap: A Configurational Analysis Based on 274 Prefecture-Level Administrative Regions in China," Land, MDPI, vol. 13(12), pages 1-41, December.
    18. Di Liu & Pan Wang, 2023. "WeChat E-Commerce, Social Connections, and Smallholder Agriculture Sales Performance: A Survey of Orange Farmers in Hubei Province, China," Agriculture, MDPI, vol. 13(11), pages 1-14, October.
    19. Marrero,Gustavo Alberto & Rodríguez,Juan Gabriel & Van Der Weide,Roy, 2021. "Does Race and Gender Inequality Impact Income Growth ?," Policy Research Working Paper Series 9865, The World Bank.
    20. Yitian Ren, 2023. "Rural China Staggering towards the Digital Era: Evolution and Restructuring," Land, MDPI, vol. 12(7), pages 1-25, July.

    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:gam:jsusta:v:17:y:2025:i:9:p:3921-:d:1643405. 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: MDPI Indexing Manager (email available below). General contact details of provider: https://www.mdpi.com .

    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.