Working Paper: CEPR ID: DP12771
Authors: Benjamin Faber; Lizhi Liu; Yizhen Gu; Victor Couture
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.
Keywords: ecommerce; trade integration; economic development; rural-urban divide
JEL Codes: F63; O12; R13
Edges that are evidenced by causal inference methods are in orange, and the rest are in light blue.
| Cause | Effect |
|---|---|
| e-commerce expansion program (L81) | e-commerce usage (L81) |
| e-commerce usage (L81) | cost of living (J30) |
| e-commerce expansion program (L81) | cost of living (J30) |
| e-commerce expansion program (L81) | consumer behavior (D19) |
| e-commerce usage (L81) | durable goods consumption (E20) |
| e-commerce expansion program (L81) | uptake of e-commerce usage (L81) |
| e-commerce expansion program (L81) | benefits for younger, richer households (D14) |