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Connecting the Countryside via E-Commerce: Evidence from China

Author

Listed:
  • Faber, Benjamin
  • Liu, Lizhi
  • Gu, Yizhen
  • Couture, Victor

Abstract

This paper estimates the impact of the first nation-wide e-commerce expansion program on rural households. To do so, we combine a randomized control trial with new survey and administrative microdata. In contrast to existing case studies, we find little evidence for income gains to rural producers and workers. Instead, the gains are driven by a reduction in cost of living for a minority of rural households who tend to be younger, richer and in more remote markets. These effects are mainly due to overcoming logistical barriers to e-commerce, rather than to additional investments to adapt e-commerce to the rural population.

Suggested Citation

  • Faber, Benjamin & Liu, Lizhi & Gu, Yizhen & Couture, Victor, 2018. "Connecting the Countryside via E-Commerce: Evidence from China," CEPR Discussion Papers 12771, C.E.P.R. Discussion Papers.
    • Handle: RePEc:cpr:ceprdp:12771
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    More about this item

    Keywords

    E-commerce; Trade integration; Economic development; Rural-urban divide;
    All these keywords.

    JEL classification:

    • F63 - International Economics - - Economic Impacts of Globalization - - - Economic Development
    • O12 - Economic Development, Innovation, Technological Change, and Growth - - Economic Development - - - Microeconomic Analyses of Economic Development
    • R13 - Urban, Rural, Regional, Real Estate, and Transportation Economics - - General Regional Economics - - - General Equilibrium and Welfare Economic Analysis of Regional Economies

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