Has Rural E-Commerce Increased Potato Farmers’ Income? Evidence from the Potato Home of China

Abstract

Rural e-commerce has achieved an effective interface between rural specialty industries and large markets. This paper explores the impact of rural e-commerce on the income levels of potato farmers based on field survey data. In addition, the extent of the impact of rural e-commerce on the income levels of potato farmers in the participating and non-participating groups was further explored under the counterfactual assumption. The main findings are as follows. (1) Rural e-commerce can increase the income of potato farmers. Participation in rural e-commerce can increase farmers’ income in both the participating and non-participating groups. If the participating group had not previously sold potatoes through rural e-commerce, their per capita household income would have been reduced by 27.22%. Similarly, if the non-participating group had sold potatoes through the rural e-commerce platform, their per capita household income would have increased by 36.35%. (2) Under the counterfactual assumption, the impact of rural e-commerce on the incomes of farmers who have not yet sold potatoes through e-commerce platforms is more profound. The marginal income increasing effect of rural e-commerce is currently at an incremental stage, and selling potatoes through an e-commerce platform can lead to higher returns for farmers. (3) Gender, farm household differentiation, self-employment experience, arable land area, position in village and whether participating in agricultural associations or cooperatives are important factors that simultaneously influence farmers’ e-commerce participation decisions and income levels. Education and health level can influence farmers’ e-commerce participation decisions. Age, farming years, dependency ratio and accessibility to irrigation can influence farmers’ income level.