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How Does the Development of the Digital Economy Enhance Farmers' Livelihood Resilience: The Roles of E‐Commerce and Digital Finance

Author

Listed:
  • Jianping Cha
  • Yashan Deng
  • Kai Zhao
  • Feifei Li

Abstract

This study investigates the synergistic impact of e‐commerce and digital finance (DF) on livelihood resilience among farmers in the upper and middle reaches of the Yellow River basin, China. Employing double machine learning, we find that the combined adoption of e‐commerce and DF significantly enhances farmers' livelihood resilience, even after controlling for endogeneity using 2SLS and CMP methods. Our analysis reveals that this synergy promotes livelihood diversification, particularly through increased non‐agricultural employment and land transfer‐in. Importantly, we identify a generational divide, with “new generation” farmers—those who are both younger and possess higher levels of education—benefiting disproportionately from this synergy. These findings underscore the potential of digital technologies to enhance rural livelihoods and highlight the need for targeted policies that address the digital skills gap and promote equitable access to digital resources. This study contributes to the theoretical understanding of livelihood resilience in the digital age, particularly by providing a comprehensive measurement framework, and offers practical insights for policymakers seeking to promote sustainable rural development through integrated e‐commerce and DF initiatives.

Suggested Citation

  • Jianping Cha & Yashan Deng & Kai Zhao & Feifei Li, 2026. "How Does the Development of the Digital Economy Enhance Farmers' Livelihood Resilience: The Roles of E‐Commerce and Digital Finance," Sustainable Development, John Wiley & Sons, Ltd., vol. 34(2), pages 2342-2358, April.
    • Handle: RePEc:wly:sustdv:v:34:y:2026:i:2:p:2342-2358
    DOI: 10.1002/sd.70462
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