Does E-Commerce Construction Boost Farmers’ Incomes? Evidence from China

Abstract

Elevating farmers’ incomes is crucial for ensuring socio-economic stability, yet the current stagnation in income growth and the expanding divide between urban and rural incomes present formidable challenges. E-commerce offers a transformative solution by bridging these disparities and fostering sustainable growth. Utilizing county-level data from 2000 to 2020 in China, particularly focusing on “The Pilot Counties of Introducing E-commerce to Rural Areas”, this paper explores the impact of e-commerce construction on farmers’ income growth using the multiple difference method. The findings reveal that e-commerce development exerts a significant positive impact on the enhancement of farmers’ incomes. Mechanistic analyses indicate that the driving effect of the comprehensive demonstration county policy of e-commerce in rural areas on farmers’ incomes is mainly realized through the channels of expanding market accessibility, promoting the advanced transformation of industrial structure, and optimizing the conditions of information infrastructure. Moreover, the efficacy of e-commerce policies in income augmentation is more pronounced in regions characterized by higher levels of human capital and substantial scale effects. This research offers valuable insights for continuously and effectively implementing the “Comprehensive Demonstration of E-commerce in Rural Areas” policy, which are crucial for exploring ways and mechanisms to boost farmers’ incomes in developing countries.