Connecting the Countryside via E-Commerce: Evidence from China
- (pp. 35-50)
(Complimentary)
Abstract
This paper estimates the impact of the first nationwide 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 that tend to be younger, richer, and in more remote markets. These effects are mainly due to overcoming logistical barriers to e-commerce rather than additional investments to adapt e-commerce to the rural population.Citation
Couture, Victor, Benjamin Faber, Yizhen Gu, and Lizhi Liu. 2021. "Connecting the Countryside via E-Commerce: Evidence from China." American Economic Review: Insights, 3 (1): 35-50. DOI: 10.1257/aeri.20190382Additional Materials
JEL Classification
- I31 General Welfare; Well-Being
- L81 Retail and Wholesale Trade; e-Commerce
- O12 Microeconomic Analyses of Economic Development
- O18 Economic Development: Urban, Rural, Regional, and Transportation Analysis; Housing; Infrastructure
- P25 Socialist Systems and Transitional Economies: Urban, Rural, and Regional Economics
- P36 Socialist Institutions and Their Transitions: Consumer Economics; Health; Education and Training: Welfare, Income, Wealth, and Poverty