E-commerce development, poverty reduction and income growth in rural China

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Zhang, H., Millan, E. ORCID: https://orcid.org/0000-0002-2421-2855, Money, K. and Guo, P. (2024) E-commerce development, poverty reduction and income growth in rural China. Journal of Strategy and Management. ISSN 1755-425X (In Press)

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To link to this item DOI: 10.1108/JSMA-06-2023-0148

Abstract/Summary

This research examines the impact of the National Rural E-commerce Comprehensive Demonstration Project (NRECDP) on poverty reduction and income growth in rural China. The study develops a theoretical framework, which considers the role of geographical, technological, institutional, and cultural factors for the e-commerce poverty alleviation (e-CPA) model. Empirically, this study applies the difference-in-differences (DID) model and the event study approach to evaluate the effectiveness of NRECDP on the basis of large-scale county-level and household-level panel data spanning 2010 to 2020. The study found that the NRECDP, as a government-led, information and communication technology (ICT)-enabled, market-based programme, has led to a significant increase in per capita output of primary industry employees, as well as in the disposable income of rural residents, especially those in national-level poverty-stricken (NP) counties. The interventions of the NRECDP achieved these positive outcomes through transportation and Internet infrastructure improvement, ICT adoption and human capital accumulation in impoverished towns and villages in remote rural areas. These effects are larger in the eastern region of China, followed by the central region, whereas the weakest effects were found in the western region. However, we found little evidence of the NRECDP increasing household developmental expenditure. The study findings have important practical and policy implications for rural e-commerce development and self-sustained poverty alleviation solutions. The research revealed the significance of government NRECDP interventions for increasing rural income, reducing living costs, and empowering the rural population in its multiple social roles, namely, as consumers, producers, employees, and microentrepreneurs. The local cultural context may also play a role in ICT adoption and entrepreneurship cultivation with a downstream effect on the effectiveness of e-CPA practices. Policymakers would need to ensure a supportive entrepreneur-friendly environment for rural e-commerce development, and continue implementing progressive policies for poverty alleviation. This study explores poverty alleviation issues in China by developing for the first time a multi-faceted framework that is subsequently tested by both county-level and household-level large-scale observations. Also, it is the first study to provide nationwide empirical evidence on the effectiveness of e-CPA in narrowing down the spatial and digital divides in China. In addition to the impact of geography, technology, and governmental support, this study also sheds light on the role of culture in the adoption and diffusion of digital technologies and as a source of local entrepreneurial opportunities.

Item Type:	Article
Refereed:	Yes
Divisions:	Life Sciences > School of Agriculture, Policy and Development > Department of Agri-Food Economics & Marketing
ID Code:	115883
Uncontrolled Keywords:	E-commerce Development; National Rural E-commerce Comprehensive Demonstration Project (NRECDP); Poverty Reduction; Income Growth; Rural China
Publisher:	Emerald

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References

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E-commerce development, poverty reduction and income growth in rural China

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