Working Paper: NBER ID: w24384
Authors: Victor Couture; Benjamin Faber; Yizhen Gu; Lizhi Liu
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; rural development; randomized control trial; China
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 |
|---|---|
| introduction of ecommerce (L81) | increase in the use of online shopping options (L81) |
| introduction of ecommerce (L81) | reduction in the cost of living for retail consumption (D12) |
| introduction of ecommerce (L81) | no significant evidence of increased income or production-side gains (F69) |
| lack of prior commercial parcel delivery services (L87) | stronger consumer gains from ecommerce (F61) |